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City and County- of San Francisco
Meeting Minutes
Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102^*689
Wednesday, May 05, 1999
10:00 AM
Regular Meeting
City Hall, Room 263
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 10: 10 a.m.
CONSENT AGENDA
DOCUMENTS DEPT,
JUN 1 6 1999
SAN FRANCISCO
PUBLIC LIBRARY
All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be acted upon
by a single roll call vote of the Committee. There will be no separate discussion of these items unless a
member of the Committee so requests, in which event the matter shall be removed from the Consent Agenda
and considered as a separate item.
990769 [Emergency Repair, Polk Street Brick Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
brick sewer on Polk Street from Grove Street to McAllister Street - $98,330. (Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
RECOMMENDED..
990770 [Emergency Repair. Harrison Street Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
sewer on Hamson Street from 5 th Street to 6th Street and to modify the existing Merlin-Morris Pump Station
$599,077. (Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED..
990771 [Emergency Repair, Green Street Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
brick sewer on Green Street from Polk Street to Van Ness Avenue - 5178,121. (Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED..
City and County of San Francisco
Printed at SM 1 PM on S/6,19
3 1223 05718 3320
Finance and Labor Committee
Meeting Minutes
May 5, 1999
990772 [Emergency Repair, 60 Scenic Way Easement Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
easement sewer on 60 Scenic Way at 26th Avenue - $73,074. (Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED..
990773 [Emergency Repair, Howard/First Streets Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
sewer at the intersection of Howard and First Streets - $1 13,800. (Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED..
990774 [Emergency Repair, Polk Street Brick Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
brick sewer on Polk Street from Sutter Street to Bush Street - $3 10,650. (Public Utilities Commission)
4/2 1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED..
990775 [Emergency Repair, Van Ness Avenue Brick Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
brick sewer on Van Ness Avenue from McAllister Street to Golden Gate Avenue - $237,490. (Public Utilities
Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
RECOMMENDED..
The foregoing items were acted upon by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
REGULAR AGENDA
990681 [Prop J Contract, Legal Process Server Services]
Resolution concurring with the Controller's certification that legal process server services can be practically
performed for the District Attorney, Family Support Bureau, by a private contractor for a lower cost than
similar services performed by City and County employees. (District Attorney)
4/8/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Ed Harrington, Controller; Supervisor
Ammiano.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Primed at 5:43 PM on 5/&/V9
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Finance and Labor Committee
Meeting Minutes
May5, 1999
990721 [Prop J Contract, Facility Security Services]
Resolution concurring with the Controller's certification that facility security services for the Public
Transportation Commission can be practically performed by a private contractor at a lower cost than by City
and County employees. (Public Transportation Commission)
4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Ed Harrington, Controller; Supervisor Yee;
Supervisor Ammiano. Amended to provide retroactivity; new title.
AMENDED.
Resolution concurring retroactively, with the Controller's certification that facility security services for the
Public Transportation Commission can be practically performed by a private contractor at a lower cost than by
City and County employees. (Public Transportation Commission)
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990720 [Lease of Property, 30 Van Ness Avenue]
Resolution authorizing a lease at 30 Van Ness Avenue (3rd Floor), for the Employee Retirement System. (Real
Estate Department)
4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers; Harvey Rose. Budget Analyst; Tony DeLucchi, Real Estate Department:
Claire Murphy. Executive Director, Retirement System; Supervisor Yee; Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990725 [Lease of Property, 225 Valencia Street]
Resolution authorizing the lease of real property at 225 Valencia Street, 1st and 2nd Floors, for the Department
of Human Services. (Real Estate Department)
4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department; Jan
Esbaugh. Human Resources Department; Supervisor Ammiano; Supervisor Bierman; Supervisor Yee.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990726 [Appropriation, Emergency Communications Department]
Ordinance appropriating $2,773,766. Emergency Communications Department, City Wide Communication
Series 1993 Bond proceeds and interest income, for the purchase of Motorola mobile desktop radio units and
accessories, and installation of a fiber optic Metropolitan Area Network (MAN) for fiscal year 1998-1999.
(Mayor)
(Fiscal impact.)
4/14/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Harvey Rose, Budget Analyst; Mike Martin. Emergency Communications Department; Supervisor Yee;
Supervisor Ammiano. Amended to indicate the correct source of funds. "Series 1 993 " should be "Series 1 998-
I and J 999-1"; new title.
AMENDED.
City and County of San Francisco
Primed at 5:43 PM on 5/6M9
Finance and Labor Committee
Meeting Minutes
May 5, 1999
Ordinance appropriating $2,773,766, Emergency Communications Department, City Wide Communication
Series 1998-1 and 1999-1 Bond proceeds and interest income, for the purchase of Motorola mobile desktop
radio units and accessories, and installation of a fiber optic Metropolitan Area Network (MAN) for fiscal year
1998-1999. (Mayor)
(Fiscal impact.)
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990762 [Roof Equipment License Agreement)
Resolution authorizing a retroactive roof equipment license extension agreement for 555 California Street for
the Municipal Railway. (Real Estate Department)
4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Supervisor Ammiano; Charles Lewis,
Municipal Railway; Tony DeLucchi, Real Estate Department.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990732 [Reserved Funds, Municipal Railway]
Hearing to consider release of reserved funds, Municipal Railway, (Federal Surface Transportation funds. File
94-92-8, Resolution No. 906-92), in the amount of $423,862, to fund the MUNI Metro Tunnel modifications.
(Public Transportation Commission)
4/15/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Continued to May 12, 1999 at the request of the Department.
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990801 [Reserved Funds, Dept of Administrative Services|
Supervisor Yee
Hearing to consider release of reserved funds, Department of Administrative Services, (Fiscal Year 1998-1999
Budget), in the amount of $350,000 to fund the City Hall Child Care Center. (Administrative Services
Department)
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Debra Alvarez, Mayor's Office of Children,
Youth & Their Families; Supervisor Bierman; Supervisor Ammiano; Supervisor Yee; Steve Nelson.
Department of Administrative Services; Joe Wilson, Coleman Advocates. Continued to May 12, 1999.
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Printed at 5:43 PM
Finance and Labor Committee Meeting Minutes May 5, 1999
990424 |Paid Maternity Leave)
Supervisor Ammiano
Hearing on the fiscal impact of one year paid maternity leave for employees of the City and County of San
Francisco and tax incentives for business that provide one year paid maternity leave for its employees.
3/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Supervisor Ammiano; Clarice Duma, Legislative Analyst; Harvey Rose.
Budget Analyst; Michelle Modina, Department of Human Resources; Susan Leal, Treasurer; Richard Sullivan,
Tax Collector; Ed Harrington, Controller; Ann Lehman, Policy Analyst, Commission on the Status of Women;
Alice Nakahara, M.A.,; Mai Mai Quon Ho, Executive Director, Asian Perinatal Services; Robin Levi. Women's
Institute for Leadership Development for Human Rights; Mildred Crear, RN, MPH, Director, Bureau of
Children, Youth & Families, Department of Public Health; Joe Wilson, Coleman Advocates.
CONTINUED TO CALL OF THE CHAIR by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 12:35 p.m.
City and County of San Francisco 5 Printed at 5:43 PM on 5/6*9
+3
s/$M
CITY AND COUNTY
Public Library,Gov't Info. Ctr., 5 th Fir.
Attn: Susan Horn
ofsanfrancisc(P OCUM ENTS DEPT.
MAY 4 1999
SA
BOARD OF SUPERVISORS
SAN FRANCISCO
p UBLIC LIBRARY
BUDGET ANALYST
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
April 30, 1999
TO: ..Finance and Labor Committee
FROM: . Budget Analyst fo^^M.^ *c ~<e±i^ J '.
SUBJECT: May 5, 1999 Finance and Labor Committee Meeting
Item 1 - File No. 99-0769
Department:
Item:
Amount:
Source of Funds:
Description:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving the expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Polk Street between Grove and McAllister
Streets.
$98,330
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
October 30, 1998, the sewer located on Polk Street
between Grove and McAllister Streets failed, and
immediate replacement was required in order to protect
the health, welfare, and property of the citizens of San
Francisco. The PUC declared an emergency on November
2, 1998. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures, and awarded a contract to Uniacke
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Budget:
Construction, Inc. which submitted the lowest quotation
in the amount of $101,550.
The total actual project cost was $98,330, including
$77,380 in actual construction costs (or $24,170 less than
the contract award amount, see Comment No. 2) and
$20,950 for DPW engineering and construction
management costs.
A summary of this budget is as follows:
Construction Contract $77,380
DPW Bureau of Engineering 1 1 ,650
DPW Bureau of Construction Management 9,300
Total
$98,330
Comments:
1. Invitations for proposals were faxed to 30 contractors
on November 3, 1998. Five quotations were received by
PUC from qualified contractors on November 5, 1998.
PUC reports that Uniacke Construction, Inc. submitted
the lowest quotation and was awarded the contract in the
amount of $101,550. The following table lists the
contractors who submitted quotations and the amounts of
the quotations:
Contractor
Quotation
Uniacke Construction, Inc. $101,550
Shaw Pipeline, Inc. $106,850
J.M.B. Construction, Inc. $117,960
Golden Pacific Construction, Inc. $165,370
Troy's Contracting &
Trinet Construction, Inc. $166,490
2. PUC reports that although the contract was awarded
in the amount of $101,550, the final contract cost, after
adjustment for actual quantities used during
construction, was $77,380 or $24,170 less than the
contract amount of $101,550.
3. PUC reports that the replacement of the damaged
sewer began on November 9, 1998, and was completed on
November 20, 1998.
BOARD OF SUPERVISORS
BUDGET ANALYST
2
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
4. Mr. P.T. Law of DPW advises tbat due to various
delays in receiving expenditure documentation from the
contractor, the PUC is requesting approval of this
resolution over five months after the construction work
was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
3
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 2 - File No. 99-0770
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving the expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Harrison Street between 5th and 6th Streets
and to modify the existing Merlin-Morris Pump Station
on Morris Street between Bryant and Harrison Streets.
$599,077
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
July 13, 1998, the sewer located on Harrison Street
between 5th and 6th Streets failed, and immediate
replacement was required in order to protect the health,
welfare, and property of the citizens of San Francisco.
PUC also advises that modifications to the Merlin-Morris
Pump Station, located on Morris Street between Bryant
and Harrison Streets, were required in order to prevent
further failures of the subject sewer. The PUC declared
an emergency on August 20, 1998. In accordance with
Section 6.30 of the Administrative Code, the PUC
initiated expedited contract procedures, and awarded a
contract to Troy/Trinet Construction-JV in the amount of
$504,077
The total estimated project cost is $599,077, including
$504,077 in actual construction costs and $95,000 for
DPW engineering and construction management costs.
A summary of this budget is as follows:
Construction Contract $504,077
DPW Bureau of Engineering 55,000
DPW Bureau of Construction Management 40.000
Total $599,077
Comments:
1. Invitations for proposals were faxed to 28 contractors
on September 16, 1998. Three quotations were received
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
by PUC from qualified contractors on September 21, 1998.
PUC reports that D'Arcy & Harty Construction submitted
the lowest quotation in the amount of $484,990.
However, according to Mr. P.T. Law of DPW, after
application of business enterprise preferences in
accordance with Chapter 12D of the San Francisco
Administrative Code, Troy/Trinet Construction-JV, which
submitted the second lowest quotation, was awarded the
contract in the amount of $504,077. A preference of
approximately $50,408 or 10 percent was applied to the
Troy/Trinet Construction-JV quotation, resulting in the
lowest adjusted quotation of $453,669. The following
table lists the contractors who submitted quotations and
the amounts of the quotations:
Contractor Quotation
D'Arcy & Harty Construction $484,990
Troy/Trinet Construction-JY $504,077
K.J. Woods Construction $648,000
2. PUC reports that both the replacement of the damaged
sewer and modification of the pump station began on
October 1, 1998. The replacement of the damaged sewer
was completed on December 24, 1998. However,
according to Mr. Law, the pump station modifications
have not been completed because the contractor is waiting
for pump components and instrumentation from the
manufacturer. Mr. Law advises that the pump station
modifications are expected to be completed in Mav of
1999.
3. Mr. Law advises that due to various delays in
receiving expenditure documentation from the contractor,
the PUC is requesting approval of this resolution over
seven months from the start of the construction work.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
5
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 3 - File No. 99-0771
Department:
Item:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving tbe expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Green Street between Polk Street and Van Ness
Avenue.
Amount:
Source of Funds:
Description:
Budget:
$178,121
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
August 4, 1998, the sewer located on Green Street
between Polk Street and Van Ness Avenue failed, and
immediate replacement was required in order to protect
the health, welfare, and property of the citizens of San
Francisco. The PUC declared an emergency on August
12, 1998. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures, and awarded a contract to J.M.B.
Construction, Inc. which submitted the lowest quotation
in the amount of $146,105.
The total actual project cost was $178,121, including
$145,471 in actual construction costs (or $634 less than
the contract award amount, see Comment No. 2) and
$32,650 for DPW engineering and construction
management costs.
A summary of this budget is as follows:
Construction Contract $145,471
DPW Bureau of Engineering 17,650
DPW Bureau of Construction Management 15.000
Total
$178,121
Comments:
1. Invitations for proposals were faxed to 29 contractors
on September 9, 1998. Three quotations were received by
PUC from qualified contractors on September 14, 1998.
PUC reports that J.M.B. Construction, Inc. submitted the
BOARD OF SUPERVISORS
BUDGET ANALYST
6
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
lowest quotation and was awarded the contract in the
amount of $146,105. The following table lists the
contractors who submitted quotations and the amounts of
the quotations:
Contractor Quotation
J.M.B. Construction, Inc. $146,105
Troy/Trinet Construction-JV $157,650
NCCI/Shimmick-JV $238,490
2. PUC reports that although the contract was awarded
in the amount of $146,105, the final contract cost, after
adjustment for actual quantities used during
construction, was $145,471 or $634 less than the contract
amount of $146,105.
3. PUC reports that the replacement of the damaged
sewer began on September 21, 1998 and was completed
on October 13, 1998.
4. Mr. P.T. Law of DPW advises that due to various
delays in receiving expenditure documentation from the
contractor, the PUC is requesting approval of this
resolution over six months after the construction work
was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 4 - File No. 99-0772
Department:
Item:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving the expenditure of funds for the
emergency work to replace a structurally inadequate
sewer located at 60 Scenic Way between 25 th and 26 th
Avenues.
Amount:
Source of Funds:
Description:
Budget:
Comments:
$73,074
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
July 16, 1998, the sewer located at 60 Scenic Way
between 25 th and 26 th Avenues failed, and immediate
replacement was required in order to protect the health,
welfare, and property of the citizens of San Francisco.
The PUC declared an emergency on July 20, 1998. In
accordance with Section 6.30 of the Administrative Code,
the PUC initiated expedited contract procedures, and
awarded a contract to J.M.B. Construction in the amount
of $50,000.
The total actual project cost was $73,074, including
$53,324 in actual construction costs (or $3,324 more than
the contract award amount, see Comment No. 2) and
$19,750 for DPW engineering and construction
management costs.
A summary of this budget is as follows:
Construction Contract $53,324
DPW Bureau of Engineering 9,650
DPW Bureau of Construction Management 10.100
Total $73,074
1. PUC reports that it did not utilize an Invitation for
Proposals process to award the contract because the
emergency at 60 Scenic Avenue required immediate
remedial action to ensure public safety. Instead, PUC
contacted the first available qualified contractor capable
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
of performing the subject emergency work and awarded
the contract to J.M.B. Construction, Inc. in the amount of
$50,000.
2. As noted above, PUC awarded the contract in the
amount of $50,000. However, the final contract cost was
$53,324,000 (or $3,324 more than the contract amount of
$50,000) because, according to Mr. P.T. Law of DPW,
DPW requested a change order to the contract for the
contractor to perform unanticipated additional work
reinforcing the support structure of the damaged sewer.
3. PUC reports that the replacement of the damaged
sewer began on August 3, 1998, and was completed on
November 2, 1998.
4. Mr. Law advises that due to various delays in
receiving expenditure documentation from the contractor,
the PUC is requesting approval of this resolution
approximately six months after the construction work was
completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
9
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 5 - File No. 99-0773
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Comments:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving tbe expenditure of funds for the
emergency work to replace a structurally inadequate
sewer at the intersection of Howard and First Streets.
$113,800
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
March 24, 1999, the sewer located at the intersection of
Howard and First Streets failed, and immediate
replacement was required in order to protect the health,
welfare, and property of the citizens of San Francisco.
The PUC declared an emergency on March 26, 1999. In
accordance with Section 6.30 of the Administrative Code,
the PUC initiated expedited contract procedures, and
awarded a contract to J.M.B. Construction, Inc. which
submitted the lowest quotation in the amount of $88,150.
The total actual project cost was $113,800, including
$88,150 in actual construction costs and $25,650 for DPW
engineering and construction management costs.
A summary of this budget is as follows:
Construction Contract $88,150
DPW Bureau of Engineering 15,650
DPW Bureau of Construction Management 10.000
Total
$113,800
1. Invitations for proposals were faxed to 26 contractors
on March 29, 1999. Four quotations were received by
PUC from qualified contractors on March 30, 1999. PUC
reports that J.M.B. Construction, Inc. submitted the
lowest quotation and was awarded the contract in the
amount of $88,150. The following table lists the
contractors who submitted quotations and the amounts of
the quotations:
BOARD OF SUPERVISORS
BUDGET ANALYST
10
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Contractor
Quotation
J.M.B. Construction, Inc.
$88,150
Shaw Pipeline, Inc.
$93,950
K.J. Woods Construction
$134,000
Miller Thompson Construction
$219,935
2. PUC reports that the replacement of the damaged
sewer began on April 5, 1999 and is expected to be
completed on May 7, 1999.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
11
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 6 - File No. 99-0774
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Comments:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving the expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Polk Street between Sutter and Bush Streets.
$310,650
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
November 5, 1998, the sewer located on Polk Street
between Sutter and Bush Streets failed, and immediate
replacement was required in order to protect the health,
welfare, and property of the citizens of San Francisco. The
PUC declared an emergency on November 9, 1998. In
accordance with Section 6.30 of the Administrative Code,
the PUC initiated expedited contract procedures, and
awarded a contract to K.J. Woods Construction which
submitted the lowest quotation in the amount of $214,000.
The total actual project cost was $310,650, including
$260,000 in actual construction costs (or $46,000 more
than the contract award amount, see Comment No. 2) and
$50,650 for DPW engineering and construction
management costs.
A summary of this budget is as follows:
Construction Contract $260,000
DPW Bureau of Engineering 27,650
DPW Bureau of Construction Management 23.000
Total $310,650
1. Invitations for proposals were faxed to 28 contractors
on November 13, 1998. Six quotations were received by
PUC from qualified contractors on November 17, 1998.
PUC reports that K.J. Woods Construction submitted the
lowest quotation and was awarded the contract in the
amount of $214,000. The following table lists the
BOARD OF SUPERVISORS
BUDGET ANALYST
12
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
contractors who submitted quotations and the amounts of
the quotations:
Contractor Quotation
K.J. Woods Construction $214,000
Golden Pacific Construction. Inc. $217,260
Shaw Pipeline, Inc. $224,840
J.M.B. Construction, Inc. $236,800
Harty Pipelines, Inc. $248,155
Troy/Trinet Construction-JV $287,225
2. As noted above, PUC awarded the contract in the
amount of $214,000. However, the final contract cost was
$260,000 (or $46,000 more than the contract amount of
$214,000) because, according to Mr. P.T. Law of DPW,
DPW requested a change order to the contract for the
contractor to perform additional work removing
unforeseen subsurface obstructions to the damaged sewer.
3. PUC reports that the replacement of the damaged
sewer began on November 23, 1998, and was completed on
February 24, 1999.
4. Mr. Law advises that due to various delays in receiving
expenditure documentation from the contractor, the PUC
is requesting approval of this resolution over two months
after the construction work was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
13
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 7 - File No. 99-0775
Department:
Item:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving the expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Van Ness Avenue between McAllister Street and
Golden Gate Avenue.
Amount:
Source of Funds:
Description:
Budget:
Comments:
$237,490
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
October 30, 1998, the sewer located on Van Ness Avenue
between McAllister Street and Golden Gate Avenue
failed, and immediate replacement was required in order
to protect the health, welfare, and property of the citizens
of San Francisco. The PUC declared an emergency on
November 9, 1998. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures, and awarded a contract to J.M.B.
Construction, Inc. which submitted the lowest quotation
in the amount of $170,242.
The total actual project cost was $237,490, including
$204,840 in actual construction costs (or $34,598 more
than the contract award amount, see Comment No. 2) and
$32,650 for DPW engineering and construction
management costs.
A summary of this budget is as follows:
Construction Contract $204,840
DPW Bureau of Engineering 17,650
DPW Bureau of Construction Management 15.000
Total
$237,490
1. Invitations for proposals were faxed to 28 contractors
on November 10, 1998. Four quotations were received by
PUC from qualified contractors on November 12, 1998.
PUC reports that J.M.B. Construction, Inc. submitted the
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
lowest quotation and was awarded the contract in the
amount of $170,242. The following table lists the
contractors who submitted quotations and the amounts of
the quotations:
Contractor Quotation
J.M.B. Construction Inc. $170,242
Troy's Contracting &
Trinet Construction, Inc. $173,840
Shaw Pipeline, Inc. $194,940
Golden pacific Construction, Inc. $198,965
2. As noted above, PUC awarded the contract in the
amount of $170,242. However, the final contract cost was
$204,840 (or $34,598 more than the contract amount of
$170,242) because, according to Mr. P.T. Law of DPW,
DPW requested a change order to the contract in the
amount of $20,111 for the contractor to work nights and
weekends in order to prevent further traffic congestion on
Van Ness Avenue and increased the contract in the
amount of $14,487 to account for actual quantities used
during construction.
3. PUC reports that the replacement of the damaged
sewer began on November 16, 1998 and was completed on
December 17, 1998.
4. Mr. Law advises that due to various delays in
receiving expenditure documentation from the contractor,
the PUC is requesting approval of this resolution over
four months after the construction work was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
15
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 8 - 99-0681
Department:
Item:
Services to be
Performed:
Description:
District Attorney, Family Support Bureau (FSB)
Resolution concurring witb tbe Controller's certification
tbat legal process server services can continue to be
practically performed by a private contractor for a lower
cost than similar work services performed by City and
County employees.
Legal Process Server Services
Charter Section 10.104 provides that the City may
contract with private firms for services which had been
performed by City employees if the Controller certifies,
and the Board of Supervisors concurs, that such services
can in fact be performed by private firms at a lower cost
than similar work services performed by City and Country -
employees. Legal Process Server Services for the District
Attorney's Family Support Bureau (FSB) consist of
locating and serving non-custodial parents of children
with court orders and other legal documentation
pertaining to their obligation to provide child support to
the custodial parents of those children.
The Controller has determined that contracting for the
legal process server services at the FSB for FY 1999-2000
would result in estimated savings as follows:
BOARD OF SUPERVISORS
BUDGET ANALYST
16
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Citv-Qperated Service Costs
Salaries
Fringe Benefits
Operating Costs
Total
Lowest
Salary
Step
$276,526
87,437
59.040
$423,003
Contractual Services Cost* 175.243
Highest
Salary
Step
$326,531
95,297
59.040
$480,868
179.847
Comments:
Estimated Savings
$247,760
$301,021
*Includes a 0.5 FTE 8158 Family Support Investigator II
position for contract monitoring, at a Step 1 annual cost of
$42,047 and a Step 5 annual cost of $51,026.
1. Legal process server services for the FSB were first
certified as required by Charter Section 10.104 in 1985
and have been provided by an outside contractor since
then.
2. The Contractual Services Cost used by the Controller's
Office is the amount budgeted by the FSB for these
services in FY 1999-2000, and is based on their projected
FY 1999-2000 volume of legal process server services
required, and on the cost of these services in FY 1998-
1999.
3. Mr. Merlin Zimmerly of the FSB advises that the FSB
plans to renew its one-year contract with L&L Legal
Assistance, Inc.
Recommendation:
4. The Controller's supplemental questionnaire, with the
Department's responses, is attached.
Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
17
Attachment
CHARTER 8.300-1 (PROPOSITION J) QUESTIONNAIRE
DEPARTMENT: D.A. Family Support Bureau
CONTRACT SERVICES: Legal Process Service
CONTRACT PERIOD: Julv 1. 1999- June 30. 2000
(1 ) Who performed activity/service prior to contracting out?
Four Family Support Bureau staff. 2 8102 Process Servers and 2 8158 FSB Investigator lis.
At that time, however, the volume of required services was significantly lower that the
current need.
(2) Number of City employees laid off as a result of contracting out?
Two vacant position (2 8102s) were deleted in FY 84/85 budget.
(3) Explain disposition of employees if they were not laid off?
N/A
(4) What percentage of City employee's time is spent on services to be contracted out?
N/A
(5! How long have the services been contracted out? Is this likely to be a one-time or an
ongoing request for contracting out?
Since Fiscai Year 1985-85. Ongoing.
(5) What was the first fiscal year for a Proposition J certification? Has it been certified for
each subsequent year?
Fiscal Year '1985-86. Yes.
(7) How will contract services meet the goals of your MBEWBE Action Plan?
Contractor is a Minority Business Enterprise (MSE).
(8) Does tne proposed contract require that the contractor provide health insurance for its
employees? Even if it is not required, does the proposed contractor provide health
insurance for its employees?
Contract does not require contractor to provide health insurance. However, contractor
does provide health insurance.
(9) Does the proposed contractor provide ber.afits to employees with spouses? If so, are the same
benefits provided to employees with domestic partners? If not, how does the proposed
contractor comply with the Domestic Partners ordinance?
Contractor provides the same benefits to all employees.
Department Representative: Merlin Zimmerlv
Telephone Number: <A15) 356-2979
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 9 - 99-0721
Department:
Item:
Public Transportation Commission (PTC)
Municipal Railway (MUNI)
Resolution concurring with the Controller's certification
that facility security services for the Public
Transportation Commission can continue to be practically
performed by a private contractor for a lower cost than
similar work services performed by City and County
employees.
Services to be
Performed:
Description:
Facility security services for Municipal Railway
operations
Charter Section 10.104 provides that the City may
contract with private firms for services which had been
performed by City employees if the Controller certifies,
and the Board of Supervisors concurs, that such services
can in fact be performed by private firms at a lower cost
than similar work services performed by City and County
employees. Facility security services for Municipal
Railway (MUNI) operations consist of unarmed stationary
and roving guards at MUNI facilities, armed guards
attending MUNI employees involved in the handling of
cash, tickets and passes, and security analysis and
development of plans for improving physical security at
MUNI facilities.
The Controller has determined that contracting for the
facility security services for MUNI for FY 1998-1999
would result in estimated savings as follows:
BOARD OF SUPERVISORS
BUDGET ANALYST
19
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Citv-Ope rated Service Costs
Salaries
Fringe Benefits
Total
Contractual Services Cost *
Estimated Savings
Lowest
Salary
Step
Highest
Salary
Step
$1,878,290
523.376
$2,401,666
$2,238,341
578.536
$2,816,877
1.584.048
1.591.897
$817,618
$1,224,980
Comments:
includes a 0.5 FTE 8221 Chief, Protective Services
position for contract monitoring, at a Step 1 annual cost of
$71,436 and a Step 5 annual cost of $86,835.
1. Facility security services for MUNI were first certified
as required by Charter Section 10.104 in 1983 and have
been provided by an outside contractor since 1975.
2. The current three-year contract, which commenced on
January 8, 1998 and expires on January 8, 2001, is with
King Security Services, Inc. The Contractual Services
Cost used by the Controller's Office was the amount
budgeted by the PTC for the subject security services in
FY 1998-1999, and was based on the projected FY 1998-
1999 volume of security services required, and on the
costs of those services in FY 1997-1998.
Recommendation:
3. The Controller certified the subject security services, in
accordance with Charter Section 10.104, on December 31,
1998. MUNI is therefore requesting approval of the
proposed resolution approximately four months after the
date of such certification. As such, the proposed
resolution should be amended to provide for retroactivity.
4. The Controller's supplemental questionnaire, with the
Department's responses, is attached.
Amend the proposed resolution to provide for
retroactivity, and approve the proposed resolution as
amended.
BOARD OF SUPERVISORS
BUDGET ANALYST
20
RFR-26-1SS9 15:44 MUNI TRSNSIT SECURITY 415 2S2 2053 P. 04
CHARTER 10.104.15 (PROPOSITION J] QUESTIONNAIRE Attachment
DEPARTMENT: phkh«. xsagg^ssatia Q3M1
CONTRACT SERVICES: r.^r->>^«H^» gaeilisy g- '-» g -- rico3
CONTRACT PERIOD: TTarrrary OS IQQfl -hm Tamy^ OB 7Cm
(1 ) Who performed ess actr/ity/tervce prior So cantracSna, out?
Kas HOt pt""TnT-mor]
{2} How many Of/ employees www lad cff as a nana cfcantraeiag out?
Bone
(3) Explain the disposition c* employees if they were not laid off.
N/A
(4) WriatoercentageeiC^ employees' time's spent of services to be contracted cut?
Approximately 501 of class 8221 position to monitor contract
(5) Hen lone have the services been contrsciad out? I* this likely to be a cne-Sme or an c-^otng
request for ccntrac*jng oat?
Since 1975; Likely to be on-going
(3) Wh3t was the first fiscal yes* tor a Pnjposison J cenrficatsn? Has it teen certified for each
subsequent year?
1983-54 f ju r al Year. Yea.
CD Hew v/tC irss ssrviees mee: the goats of you.* MEE-WES Acaon Plan?
Hiey will comply vith requireaients of FIA. DBE Program. Contractor is DSE.
{85 Does the proposed contract require that tne contractor provide neaUh msuranca for its employees?
Even ri net required, are health benefits provicesf 7
Yes. Yes.
(9) Dees the proposed contractor provide benefits to employees with spouses ? If so. are the same
bene&a provided to emptoyesa wSh domestic partners? If not. hew does the proposed contractor
comply with tre Domestic Partners ordinance?
Contractor en HHC approved list for equal benefits reqxjirements
Departrnim: Representative: p^n rhin
Telephone Number (415) 292-2045
TOTR. P. 02
TOTAL P. 04
21
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 10 - File 99-0720
Departments:
Item:
Department of Real Estate (DRE)
Employees Retirement System (ERS)
Resolution authorizing a lease of space at 30 Van Ness
between ERS and the Herbst Foundation.
Location:
Purpose of Lease:
30 Van Ness Avenue, 3 rd Floor.
To provide additional space to accommodate ERS's growth
over the past 15 years, from 60 employees in Fiscal Year
1984-1985 to 78 employees in Fiscal Year 1998-1999.
ERS is currently located at 1155 Market Street, where
the lease expires on June 30, 1999. The annual rent at
1155 Market Street is currently $185,689.92, or
approximately $15.50 per square foot per year for
approximately 11,980 square feet. The lessor at 1155
Market Street has quoted a lease rate, effective July 1,
1999, of $35 per square foot per year for the same space
which, under a new lease, would be measured as
approximately 12,400 square feet, or $434,000 annually,
which would be $248,310.08, or over 133 percent, more
than the existing rental rate.
Lessor:
The Herbst Foundation
Lessee:
ERS
No. of Sq. Ft. and
Cost Per Year:
The proposed lease at 30 Van Ness Avenue consists of
approximately 19,814 square feet of office and common
space, which is approximately 7,414 square feet, or
approximately 60 percent, more than the existing space at
1155 Market Street. Ms. Kay Gulbengay of ERS reports
that approximately 4,196 square feet, or 57 percent of the
7,414 square feet of additional space, will be used to
provide a larger area for providing service to City and
County employees, both active and retired, and to provide
space for presentations and counseling for large groups
and interviews with investment managers. According to
Ms. Gulbengay, ERS is overcrowded at 1155 Market
Street and needs additional space to accommodate growth
over the past 15 years in staff and members served.
BOARD OF SUPERVISORS
BUDGET ANALYST
22
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Annual Payment
by Lessee:
Source of Funds:
Utilities Provided
By Lessor:
Janitorial Services
By Lessor:
Term of Lease:
Right of Renewal:
Description:
The proposed annual rental payment would be
$473,554.60 per year for the first five years, based on
approximately $23.90 per square foot per year for 19,814
square feet, and $548,451.48 per year for the second five
years, based on approximately $27.68 per square foot per
year. The initial five-year annual rental amount at 30
Van Ness Avenue of $473,554.60 is $39,554.60, or 9.1
percent, more than the quoted July 1, 1999, annual rental
rate at 1155 Market Street of $434,000, if ERS were to
remain at 1155 Market Street. However, as noted above,
ERS would gain 7,414, or approximately 60 percent more
square feet at 30 Van Ness Avenue than the 12,400 to be
provided under the current lease at 1155 Market Street.
Employee Retirement Trust Fund
Lessor will pay for all utilities.
Lessor will be responsible for janitorial services.
Ten years, from August 1, 1999 through July 31, 2009.
ERS would have two options under the proposed lease to
extend the lease, for an additional five years each, at a
monthly rental based on the rate for the previous term
and adjusted to account for any increase in the Consumer
Price Index.
The rate of $23.90 for the first five years under the
proposed lease at 30 Van Ness Avenue is $11.10 per
square foot annually, or 31.7 percent less than the $35
annual rate per square foot at 1155 Market Street.
Consequently, ERS has requested to relocate to the 30
Van Ness Avenue facility.
Attachments I and II, provided by ERS, provide
comparative data for the 1155 Market Street and 30 Van
Ness Avenue locations. As can be seen on Attachment I.
the number of ERS members to be served at the ERS
facility each year is expected to increase by 37 percent
next year, owing to the impact, according to Ms.
Gulbengay, of the ability of City and County employees to
BOARD OF SUPERVISORS
BUDGET ANALYST
23
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
purchase prior service and repay retirement account
shortages on a pre-tax basis, and the proposed lease at 30
Van Ness Avenue will provide more space per employee
than the available space at 1155 Market Street, 198
square feet per employee versus 126 square feet per
employee, or an increase of 57 percent.
As can be seen on Attachment II, although the proposed
lease at 30 Van Ness Avenue provides for an
approximately 60 percent increase in the number of
square feet, the cost per square foot would decrease by
31.7 percent.
The proposed lease requires that the lessor "at [lessor's]
sole cost and expense . . . shall furnish and install the
Leasehold Improvements shown on the Approved Final
Plans in a good and professional manner in accordance
with sound building practice." According to Mr. Charles
Dunn of DRE, these Leasehold Improvements include
wiring and lighting, Heating, Ventilation and Air
Conditioning, and other work to prepare the space for use
by ERS. According to Mr. Dunn, the estimated cost of
these improvements is $1,000,000. ERS will reimburse
the lessor for $32,000 in additional improvements,
including additional floor strengthening to accommodate
the weight of ERS's microfilm storage machines, special
Heating, Ventilation and Air Conditioning for ERS's
computer systems, and investment communications
equipment needs.
The proposed lease requires that if the lessor should
decide to sell the property during the term of the lease (or
any extension thereof), the lessor shall first offer to sell
the 30 Van Ness Avenue building to the City at the
purchase price that the property will be offered to the real
estate market. Mr. Dunn advises that the current fair
market value of the 30 Van Ness Avenue building is $18
to $24 million.
Comments: 1. According to Mr. Dunn, the proposed rent for 30
Van Ness Avenue represents fair market value.
2. The Fiscal Year 1998-99 ERS budget includes
$249,044 for moving costs and other costs related to the
ERS relocation to 30 Van Ness Avenue. ERS anticipates
BOARD OF SUPERVISORS
BUDGET ANALYST
24
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
additional expenditures of $37,300 related to the
relocation of their office, and have requested funds for this
purpose in their proposed FY 1999-2000 budget.
3. Based on (a) the representations of ERS that
existing ERS space conditions are overcrowded at 1155
Market Street, (b) based on the 31.7 percent reduction in
the rental rate per square foot at the proposed 30 Van
Ness site, and (c) based on an examination of all of the
relevant data presented by ERS, the Budget Analyst
believes it is reasonable for ERS to relocate to larger
space at 30 Van Ness Avenue.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
25
PFR-2S-1SS9 11:46
CCSF RE=L E5TRTE DEFT
415 532 S21S P. 02/03
Attachment I
ATTACHMENT #1
11«5 Market
30 Van Neat
Prooosed
Iacrtue
Over 1155 Market
* ed Members Served
29,217
40,000'
37%
# at Rearemeat ImployesT
78
79
1%
Membera Served Per Employee
374
506
35%
Area*
10,006 si
15,618 si
56%
Area Per Employes
126 si
198 si
57%
It should be noted that over the past 15 years not only has the number of City employees
(members) served increased 84% but the overall size of the fund has grown from S2.1
billion in 1984 to S9.8 Billion in 1997, a 366% increase.
Notes:
1. Estimated impact of the Pretax Buy-Bade, next year.
2. Tnr-in^-ft employees and on site vendors and consultant 1 ;
3. Excludes members and other non-employes areas.
L\users\CD\wpl50\*099\BudAna4.dcc
26
£3'c "itilQi
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27
SFR-27-1SS9 12: 11 C CSF REAL ESTATE DE?T
Attachment III
Specialty costs per landlord:
HVAC System; S 7,939
Floor support & Comm: 24,0OO ± "
Total: S32,000±
Notes:
1 In order for the Landlord to provide an exact price fcr this construcdon, full working
drawings will need to be pr e p ar ed by a certified structural engineer and such drawinzs will need
to be approved by the City's Department cf Building Inspection.. Along with the actual cost cf
the floor strengthening, the Ciry is responsible for the cost of such drawings (52,500 which is
included in the S24000 estimate). Tae Cky dees not want to pay for these drawings without the
approval of the overall transaction by the Board of Supervisors.
CD:WP\S099\Buc3 Anal Attach, doc
TOTPL P. 02
28
CFR-2S-1SS9 16:27 S.F. RETIR=>£HT SrSTEM 415 534 1522 P. 21/22
City and County of San Francisco San Francisco City and Ccunty
Employees 5 Retirement System
Office of The Eiscirtiy^kactcr
, - * " A-tac'rjner.t IV
'??.?.£ i cf 2
Memorandum
DATE: March 22, 1299
TO: Christine Ragan, Rscai and Fclicy Analyst
FROM: Clare M. Murphy, Executive Directcr
RE: 1 998-1 SS9 Moving Expense
The Retirement System jf998-1 999, 0^ get provides fcr S24S.044 to
cover move related expenses. At the present time several items are
out for bid or will be bid in the next two weeks (see *"). Following sre
the items for which we have firm bids and best estimates fcr items
out to bid:
Telephone and wiring $122,SOi
Spaca Planning S 15,000
$10,GOO expended to
date, balance encumbered
Computer Equipment
Move S 16,200 estima:ed as
of 1/98 -
Dismantling/Reinstalling
existing office furniture
Moving expanses furniture
records,
Eiqreceived to date
S
as
S4
16,800 estimated
cf 1/98"
5,000 estimated 1>
5 12,000
s e.cco
{*1S} S£*-l£2n IMSUarxntStn-mt £an F.-ancizcc, CA S41 03-1 £=
29
. ^-2E-i=59 16:27 „_ RETIRED S^THM
g
-. Structural Engineering 517,000 to 24,000
Real Estate Wcrkorcer
••— (additional request) S12.S00
TOTAL (except items pending bids") . $205,304
TOTAL (inducing bast estimates of S279.404
pending bids)
Several items were net contemplated in preparing the 1S98-1SS3
budget indude:
- Structural Engineering changes —
- HVAC requirements
- Additicnai Real Estate wcriccrder. —
These "items total in excess cf $37,300
415 554 1523
P.e2/B2
Acoacnment ~V
Page 2 of 2
\H¥F^i
3
TCTft. r.22
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 11 -99-0725
Department:
Item:
Department of Human Services (DHS)
Department of Real Estate (DRE)
Resolution authorizing a new lease of real property of the
1 st and 2 nd floors at 225 Valencia Street.
Location:
Purpose of Lease:
Lessor:
Lessee:
225 Valencia Street
To provide additional leased space for additional program
needs and to alleviate reported overcrowded conditions for
the Department of Human Services (DHS) Family and
Children Services (FCS) Division located in the City-
owned building at 170 Otis Street. The proposed lease
would relocate 50 existing FCS employees from 170 Otis
Street to the proposed space at 225 Valencia Street.
Valencia Street LLC
DHS
No. of Sq. Ft. and
Cost Per Month:
Annual Cost:
The proposed space at 225 Valencia consists of
approximately 12,750 square feet of office and common
area space at $1.56 per square foot per month for the first
two years, $1.65 per square foot per month for the third
and fourth years, and $1.72 per square foot per month for
the fifth, sixth and seventh years.
$238,680 for the first two years, $252,450 for the third
and fourth years, and $263,160 for the fifth, sixth and
seventh years.
Utilities and
Janitorial Services:
Term of Lease:
All costs for utilities and janitorial services would be the
responsibility of the City.
The proposed lease would commence on June 15, 1999 or
upon completion of tenant improvements (expected within
approximately 60 days after approval of the proposed
resolution) whichever is later, and expire seven years
thereafter.
BOARD OF SUPERVISORS
BUDGET ANALYST
31
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Right of Renewal:
Source of Funds:
Description:
The City would have the option to extend the term for one
additional period of five years at 100 percent of the fair
market rent. Ms. Claudine Venegas of the DRE states
that the fair market rent would be determined through
mutual negotiations between the City and the Lessor.
37% Federal Grant Funds, 27% State Grant Funds and
36% General Fund which will be included in DHS's FY
1999-2000 budget.
According to Mr. Jan Esbaugh of DHS, the proposed lease
would provide space for the Family and Children's
Services Program (FCS) to relocate 50 children's welfare
and support staff positions and related programs from 170
Otis Street to 225 Valencia Street. The following FCS
programs, which are currently located at 170 Otis Street
and staffed by the 50 FCS positions to be relocated, would
be moved to 225 Valencia Street:
• Independent Living Skills Program which prepares
foster youth to emancipate from foster care;
• One Child Welfare Unit;
• Visitation Room where parents can visit their children
who are in foster care;
• Foster Care Licensing Unit and Foster Parent
Resource Room which provide mandatory training of
foster parents.
The proposed lease at 225 Valencia Street would also
provide space for the following new DCS programs which
would also be staffed by the 50 DCS positions to be
relocated from 170 Otis Street:
• Teen Drop-In Center
• One additional Child Welfare Unit
Mr. Esbaugh advises that in early 1999 FCS hired 44.5
FTE new employees which were authorized by the Board
of Supervisors in FY 1998-99 (Files 98-1980 and 98-1981),
bringing the total number of FCS employees to 390 FTEs.
These 44.5 FTE new employees are currently located at
170 Otis Street. The addition of these 44.5 FTE new
employees has resulted in overcrowded space conditions
at 170 Otis Street. As reported by DHS in their attached
BOARD OF SUPERVISORS
BUDGET ANALYST
32
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
memorandum, the 44 new employees "are located in
hallways or areas not intended nor set up (no
electrical/data/phone) as office space." In addition, other
DHS programs which have been expanded recently, such
as the CalWORKs program, are in need of more space at
170 Otis Street, according to Mr. Esbaugh.
According to Mr. Esbaugh, the proposed lease would allow
FCS to relocate 50 employees and related programs from
170 Otis Street to the proposed space at 225 Valencia
Street in order alleviate overcrowded conditions at 170
Otis Street and accommodate the additional FCS
programs described above. The Attachment, provided by
Mr. Esbaugh, describes in detail the overcrowded space
conditions for the FCS Division at 170 Otis Street and
explains why the proposed additional space at 225
Valencia Street is necessary.
Comments: 1. DHS reports that, in addition to relieving the
overcrowded conditions at 170 Otis Street, the space
provided under the proposed lease at Valencia Street
would allow FCS to establish, with the same 50
employees who would move there from 170 Otis Street, a
new Teen Drop-In Center, consisting of approximately
500 square feet, and an additional Child Welfare Unit,
consisting of 750 square feet of the 12,750 square feet. In
addition, the Visitation Room, which would be relocated
from 170 Otis Street where it currently occupies 2,500
square feet, would occupy 1,000 square feet in the
Valencia Street location. According to DHS, the Foster
Parent Resource Room which currently occupies 100
square feet 170 Otis Street would occupy 100 square feet
in the Valencia Street location. In total, the new Teen
Drop-In Center, new Child Welfare Unit, relocated
Visitation Room and relocated Foster Parent Resource
Room will occupy 2,350 square feet.
In addition to the 2,350 square feet of space described
above, approximately 4,000 square feet of the proposed
total of 12,750 square feet would by occupied by the 50
FCS employees, or an average of 80 square feet each,
according to Mr. Espaugh. Mr. Espaugh advises that
DPH is unable to provide an estimate of the amount of
space these 50 employees currently occupy at 170 Otis
BOARD OF SUPERVISORS
BUDGET ANALYST
33
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Street because they are in locations spread throughout
the building. Mr. Espaugh states that the remaining
6,400 square feet of the total 12,750 square feet would be
occupied by common areas including bathrooms, kitchen,
conference rooms, and hallways.
2. Ms. Claudine Venegas of the Department of Real
Estate advises that the Lessor will pay for the leasehold
improvements at an estimated cost of $200,000. Such
improvements include building out office space, internal
walls, electricity, heating and Americans with Disabilities
Act improvements. These leasehold improvements are
expected to be completed within approximately 60 days
after approval of the proposed resolution, according to Ms.
Venegas.
3. According to Ms. Venegas, the proposed rent represents
fair market value.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
34
RPR-30-1999 14:51
City and County of San Francisco
Attachment
Page 1 of 2
Department of Human Services
Will Ughtbourne
i Executive Director
Deputy Directors
Bill Bettencourt
Jim Buick
Sally Kipper
April 30, 1999
To: Monique DeJong
From: Jan Esbauob^Vv
Subject Lease of 225Valen
Family and Children's Services (FCS) occupies four floors at the Department of Human
Services Building at 170 Otis Street. DHS currently makes bond payments on this
building. FCS has a total staff of 390 FTE positions. This includes 44 nev/ positions
added as a result of addition funding in the States 98/99 Budget and authorized by the
Board of Supervisors in FY 98/99. These 44 new employees are currently housed at
170 Otis street and are either sharing desk space with other staff or are located in
hallways or areas not intended nor set up (no electrical/data/phone) as office space.
This was necessary because of the length of time needed to find additional space.
FCS is proposing to relocate a total of 50 staff from 170 to the proposed site at 225
Valencia. These include two units serving youth ages 13 to 18 in Foster Care. (14
Child Welfare Workers, two supervisors, and 4 support staff)
The Independent Living Skills Program will relocate from 170 to this site (one
supervisor and 4 staff)
In meeting a new state mandate to provide services to youth aged 18 to 21 who have
emancipated from Foster Care we are establishing a teen center at this site. This will
occupy an area of approximately 500 sq ft. These youth will be service by th'3 ILS staff.
There will also be a Youth Ombudsperson as well as the Department Ombucls persons
at this location.
Our intent is to also relocate the Visiting Room from 170 Otis to Valencia Street. The
visiting room is staffed by 1 supervisor and 5 social workers and one suppo 1 staff that
provide supervision during visits by parent with their children who have been removed
by Juvenile Court action. The visiting room will be in operation from 8 am lo 8 pm six
days a week to facilitate parents who are employed or in treatment and to aid in
(415) 557-6000
P.O. Box 7988
San Francisco, California 94120
35
flPR-30-1999 14:51 p 03
Attachment
Page 2 of 2
visitation. Currently the visiting room occupies 2500 square feet and a: the new
location will be approximately 1000 sq ft.. There is also a Foster Parent Resource
Room that assists in the recruitment and retention of Foster Parents.
The Foster Home Licensing Unit which recruits and licenses Foster Homss in San
Francisco will be relocated to this facility. This consists of a Supervisor 8 Child
Welfare Workers and 2 support staff. There will also be a classroom/conference room
area to facilitate state mandated training for foster parents.
The remainder of the space is common usage consisting of an additional conference
room , reception area, etc/
TOTAL P. 23
36
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 12 - File 99-0726
Department:
Item:
Amount:
Source of Funds:
Budget:
Description:
Emergency Communications Department (ECD)
Ordinance appropriating $2,773,766 of the proceeds and
interest earnings of San Francisco Finance Corporation
Lease Revenue Bonds, for the purchase of Motorola
mobile and desktop radio units and accessories, the
installation of a fiber optic metropolitan area network,
and 800 megahertz communications equipment for the
Citywide Emergency Radio System Project.
$2,773,766
San Francisco Finance Corporation Lease Revenue Bond
Proceeds, Series 1999-1 ($2,523,766) and San Francisco
Finance Corporation Lease Revenue Bond Interest
Earnings, Series 1998-1 ($250,000).
A summary budget for this request of $2,773,766 is as
follows:
Phase II Expenses:
Metropolitan Area Network
262 Motorola Portable and Mobile
Radio Units
Subtotal
Phase I Expenses
Total
$1,807,000
716.766
2,523,766
250.000
$2,773,766
The Attachment to this report, provided by Ms. Lisa
Marie Harris of the ECD, contains a description of this
budget request for Phase II costs of $2,523,766. The
Phase I expenses of $250,000 is a previously anticipated
funding source towards the total estimated construction
costs for Phase I of $28,485,593.
In November of 1993, voters approved the issuance of $50
million in San Francisco Finance Corporation Lease
Revenue Bonds to finance the acquisition, construction
and installation of an 800 Megahertz Radio System, now
called the Citywide Emergency Radio System Project
(Project).
BOARD OF SUPERVISORS
BUDGET ANALYST
37
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
It is expected that the Project, which has been previously
authorized by the Board of Supervisors, will provide
uninterrupted, highly reliable communication abilities
which will allow the Police, Fire, Paramedics and other
City agencies, including the Water Department, Sheriffs
Department, Department of Parking and Traffic, the
Recreation and Parks Department, the Mayor's Office of
Emergency Services and the Department of
Telecommunications and Information Services, to provide
enhanced delivery of emergency services in the event of
an emergency or natural disaster. According to Ms.
Harris, the purchase and construction of certain facilities
and equipment, such as antenna towers, microwave
transmitters, fiber optic cabling, and hand-held radios, to
be funded by the issuance of these subject bonds are
considered necessary to make the 911 Combined
Emergency Communications Center operational.
Construction and financing of the Project has been
divided into two phases. Phase I consists of the design
and construction of the transmission sites for the system.
Phase II consists of design and construction of the fiber
optic network that links the transmission sites and
acquisition and installation of the portable and mobile
radios.
In January of 1998 the City issued the San Francisco
Finance Corporation Lease Revenue Bonds, Series 1998-1,
in the amount of $31,250,000, out of the total amount of
$50,000,000 authorized by the voters, to finance Phase I
of the Project. The proceeds of the Series 1998-1 Bonds
were appropriated for construction of Phase I of the
Project. The amount appropriated for construction was
$27,783,037, with the $3,466,963 balance of the Series
1998-1 bond funds appropriated for the cost of the bond
issuance and the debt service reserve account.
The financing plan for Phase I of the Project anticipated
the future availability of interest earnings in the amount
of $702,556. Since the original Phase I appropriation was
approved, unexpended Series 1998-1 bond funds have
earned interest income in the amount of $250,000. Such
interest earnings can only be used for the Project.
Therefore, this proposed supplemental appropriation
BOARD OF SUPERVISORS
BUDGET ANALYST
38
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
would appropriate such interest earnings as a previously
anticipated revenue source towards the total project
construction costs of $28,485,593. The new balance of
funds appropriated for construction therefore would
increase by $250,000, from $27,783,037 to $28,033,037.
In January of 1999, the City issued the San Francisco
Finance Corporation Lease Revenue Bonds, Series 1999-1,
in the amount of $18,665,000, out of the $18,750,000
remaining amount ($50,000,000 less Series 1998-1
amount of S3 1,250,000) authorized by the voters, to
finance Phase II of the Project. $13,808,365 of the
proceeds of the Series 1999-1 Bonds have already been
appropriated as part of ECD's Fiscal Year 1998-1999
Budget. Of this $13,808,365 appropriation, $2,311,068
was for bond issuance costs and the debt service reserve
account, and $11,497,297 was appropriated for Phase II of
the Project. This supplemental appropriation of
$2,523,766 would therefore increase total funding for
Phase II of the Project from $11,497,297 to $14,021,063.
As shown in the Attachment to this report, the proposed
ordinance would appropriate $2,523,766 from the
proceeds of the Series 1999-1 Bonds for: (a) the
installation of a fiber optic cable network (referred to as
the Metropolitan Area Network) to interconnect six sites,
the main antenna site on Twin Peaks, the 911 Combined
Emergency Communications Center and downtown
antenna sites at City Hall, the Hall of Justice, Fire
Department Headquarters and the Department of
Telecommunications and Information Services computer
facility ($1,507,000); (b) telephone termination equipment
($250,050); (c) networking management hardware and
software ($49,950); and, (d) the purchase of 262 Motorola
mobile and desktop radio units and accessories, related
programming, installation, testing and user training at an
average unit price of $2,735 per radio ($716,766).
Comments: 1. The title of the proposed ordinance incorrectly
identifies the source of the funds to be appropriated as
"Citywide Communication Series 1993 Bond Proceeds."
According to Ms. Harris, $2,523,766 is proposed to be
appropriated from the proceeds of the Series 1999-1 Bonds
and $250,000 is proposed to be appropriated from interest
BOARD OF SUPERVISORS
BUDGET ANALYST
39
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
earnings on the proceeds of the Series 1998-1 Bonds, not
Series 1993 Bond proceeds. The ordinance should
therefore be amended to indicate the correct source of
funds.
2. The contract for design and construction of the Project
was awarded by competitive bid to Motorola.
3. Design and construction of six of the transmission
sites included in Phase I has been completed.
Construction of additional faculties to improve City-wide
radio coverage has begun, as has installation of radio
equipment into Police and Fire Department vehicles.
Design and construction of the fiber optic network has not
yet begun. The Citywide Emergency Radio System
Project is scheduled to be completed by March of 2000.
Recommendation: 1. Amend the title of the proposed supplemental
appropriation ordinance to substitute "Series 1998-1 Bond
Proceeds and Series 1999-1 Bond Proceeds" for "Series
1993 Bond Proceeds".
2. Approve the proposed ordinance as amended.
BOARD OF SUPERVISORS
BUDGET ANALYST
40
Attachment
Attachment I
800 MHz Phase II Ccsis
Fiber Optic Cabie for
Six Proposed Sites:
E-911 CECC, 1011 Turk Street
City Hall, 1 Dr. Gocdlett Place
Hail of Justice, 850 Bryant
Fire Headquarters, 2nd and Townsend St
DTIS Computer, 1 Market Plaza
Twin Peaks City Site
$ 1,507,000
Temination Equipment for Six Sites Above:
Sonnet Equipment ( for 6 sites)
Networking Management hardware/software
250,050
49,950
Motorola Portable and Mobile Radios
induces intallaticn, software, decking stations
Quantity: 262
716,766
Total S 2,523,765
Source : E-rnerger.cy Communications
Department
41
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 13 - File 99-0762
Department:
Item:
Location:
Purpose of
License Agreement:
Lessor:
Lessee:
No. of Sq. Ft.:
Cost Per Month:
Annual Cost:
Increase Over Prior
License Agreement:
Description:
Real Estate Department (RED)
Municipal Railway (Muni)
Resolution authorizing a retroactive roof equipment license
extension agreement for 555 California Street for the
Municipal Railway.
555 California Street, downtown San Francisco
To provide space for two radio antennas and transmitters
and all associated wiring and equipment to be used for
radio communication to support the San Francisco
Municipal Railway
555 California Street Partners
City and County of San Francisco for Municipal Railway
72 square feet
$4,000
$48,000
$36,000 annually (300%)
The subject resolution would authorize the renewal of a
Roof Equipment License Agreement between Muni and 555
California Street Partners, owners of the office building
located at 555 California Street. The leased area would be
used to provide space for two radio antennas and
transmitters and all associated wiring and equipment for
radio communications in support of Muni operations.
According to Mr. Charles Lewis of Muni, the subject radio
equipment would provide the necessary infrastructure to
enable radio communications between Muni dispatchers
and transit operators in the downtown area from Muni's
central control station located at 131 Lenox Way. Mr.
Lewis reports that Muni has occupied the subject space
under a license agreement since 1986.
BOARD OF SUPERVISORS
BUDGET ANALYST
42
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Term of Lease: Three years, retroactive to November 1, 1998 to October 31,
2001.
Source of Funds:
Comments:
For FY 1998-99, Muni would fund the license agreement
with previously appropriated surplus funds. For FY 1999-
2000 and FY 2000-2001, Muni would fund the lease from
Muni's annual operating budget.
1. According to Mr. Larry Jacobson of the Real Estate
Department, this proposed resolution, which requires a
retroactive clause to November 1, 1998, was not submitted
to the Board of Supervisors at an earlier date because (1)
an initial proposal was not received from 555 California
Street Partners until January 1999, and (2) the Real
Estate Department entered into a lengthy negotiation with
555 California Streets Partners in an attempt to minimize
the proposed rate increase for the subject site.
2. In accordance with the proposed license agreement, the
new monthly rate for the subject space would be $4,000
which is $3,000 or 300 percent more than the $1,000
monthly rate under the previous license agreement which
expired on October 31, 1998. According to Mr. Jacobson,
the proposed $4,000 monthly rate represents fair market
value due to the rapidly growing demand for similar space
for both public and private sector radio operations. Mr.
Jacobson reports that the City occupies similar rooftop
space at One Market Plaza at a monthly rate of $4,000. the
same rate as provided for in the subject license agreement.
3. According to Mr. Larry Garde with the Department of
Telecommunications and Information Services, the office
building located at 555 California is presently the only
available building tall enough to allow the continued
successful operation of Muni's radio communications in the
downtown area. Mr. Garde explains that no other available
site would provide adequate clearance from physical
obstructions (i.e., other buildings) that would hamper the
necessary radio communications.
4. According to Mr. Garde, Muni anticipates that it will
consolidate space for Muni's downtown radio
communications needs with the City's new 800 Megahertz
BOARD OF SUPERVISORS
BUDGET ANALYST
43
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Radio System and that the proposed subject licensed space
may not be required after that time. Mr. Garde explains
that the subject radio equipment may be moved to the
building located at One Market Plaza where equipment
related to the City's new 800 Megahertz Radio System is
now being installed. Mr. Garde further explained that the
subject radio equipment cannot be moved to the One
Market Plaza location until the City's Department of
Telecommunications and Information Services has
completed engineering tests to ensure that the co-location
of the two communication systems will not disrupt
communication services. Mr. Garde anticipates that these
engineering tests will be completed by February 2000 and
that the subject equipment may be re-located to One
Market Plaza at that time. . The proposed license
agreement has an ending date of October 31, 2001 subject
to a termination provision with 180 days prior written
notice to the lessor. According to Mr. Jacobson, the Real
Estate Department negotiated a three-year license
agreement (with a termination provision) in order to ensure
that the monthly rate at the subject site does not exceed
$4,000 in the event that aforementioned engineering
studies indicate that relocating the subject equipment to
One Market Plaza would be infeasible.
Recommendation: Approval of the proposed resolution is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
44
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 14 - File 99-0732
Department: Municipal Railway (Muni)
Item: Release of reserved funds in the amount of $423,862 to fund
electrical improvements related to health and safety in the
Metro tunnels.
Amount:
Source of Funds:
Description:
$432,862
Federal Surface Transportation Funds
In October of 1992, the Board of Supervisors approved a
resolution authorizing the Pub He Utilities Commission
(PUC) to apply for, accept and expend $1.2 million of Federal
Surface Transportation Funds and $300,000 of local and
regional matching funds, for a total of $1.5 million to provide
financing for the design and rehabilitation of MUNI's fixed
facilities (Resolution No. 907-92, File 94-92-8). The
modifications to MUNI's fixed facilities include alterations to
subway, surface and maintenance facilities to accommodate
larger light rail vehicles (LRVs) than were currently in
service in the Muni fixed rail system.
Of the total $1.5 million authorized, $1,273,862 was placed
on reserve for capital improvement projects, pending the
selection of contractors and submission of cost details.
According to Mr. Jerry Levine of Muni, since the initial
reserve, the Board of Supervisors has approved the release of
$805,000 of the total original reserve of $1,273,862, leaving a
balance remaining on reserve of $468,862.
This subject project represents the fourth in a series of four
capital projects to rehabilitate existing MUNI Metro fixed
facilities and is listed in the table below as the System-Wide
Fixed Facility Rehab project. The four projects include:
Project Title
Total Funds
Metro East Facility Project $1,500,000
Eureka Portal Reconstruction 1,751.800
Fixed Facility Rehab (including
Cable Car Hatch Cover Installation) 1,500,000
System-Wide Fixed Facility Rehab (subject item) 1.500.000
TOTAL $6,251,800
BOARD OF SUPERVISORS
BUDGET ANALYST
45
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Comment: Mr. Levine has requested that this item be continued until
the May 12, 1999 Finance and Labor Committee meeting in
order to provide Muni with additional time to submit cost
information as requested by the Budget Analyst.
Recommendation: Continue the proposed resolution to the May 12, 1999
Finance and Labor Committee Meeting, as requested by
Muni.
BOARD OF SUPERVISORS
BUDGET ANALYST
46
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 15 - File 99-0801
Department:
Item:
Department of Administrative Services
Department of Children, Youth and Their Families
Request for release of $318,838 to complete the
construction, equipment and furnishings for the
City Hall Child Care Center.
Amount:
$318,838
Source of Funds:
General Fund
Budget:
Exterior Playground
$ 158,350
Interior Improvements
90,000
Fixtures, Furnishings & Equip
55.305
Subtotal
$303,655
5 Percent Contingency
15.183
Total
$318,838
Description:
Comments:
The proposed request would release $318,838 of the
total of $350,000 which was placed on reserve in
the FY 1998-99 Department of Administrative
Services budget for a Child Care Center in City
Hall. According to Mr. Steve Nelson of the
Department of Administrative Services, these
funds were placed on reserve for the City Hall
Child Care Center because, at the time of the FY
1998-99 budget deliberations, the Department
could not identify (a) the specific childcare facility
requirements and (b) the associated costs that
would be necessary to complete such a facility.
The new Child Care Center would consist of
approximately 3,500 square feet located in the
northwest quadrant of the basement of City Hall
with the main entrance and access from McAllister
Street. In addition, the Child Care Center would
have two outdoor play areas on the McAllister
Street side of City Hall, comprising an additional
approximately 1,800 square feet.
1. Mr. Nelson reports that he does not have a
separate breakdown of the costs to construct the
basic space for the Child Care Center, which was
BOARD OF SUPERVISORS
BUDGET ANALYST
47
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
completed as part of the overall City Hall
renovation project. However, Mr. Nelson reports
that in the final plan there will be two separate
children's bathrooms and one adult bathroom as
well as two food preparation areas in the proposed
space, although the children will be required to
bring their own lunches and Marin Day School will
provide morning and afternoon snacks. Mr. Nelson
notes that the construction of this space has
already included one bathroom for children, one
bathroom for adults, three undercounter
refrigerators, one full-size refrigerator, one washer
and dryer and two dishwashers. Mr. Nelson notes
that the requested $318,838 would complete the
necessary renovations to make the space useable
for a Child Care Center.
2. As noted above, the City Hall Child Care Center
would have two exterior play areas, one for
toddlers, at a cost of $80,260, and one for infants,
at a cost of $78,090, for a total cost of $158,350. The
Budget Analyst questioned why the City Hall Child
Care Center is proposing to construct these two
exterior play areas, when over the past five years,
the City has spent over $600,000 of Open Space
Funds to construct two extensive play areas,
specifically geared toward young children in the
Civic Center Plaza, directly across the street from
City Hall. Ms. Karen Hong, of the Department of
Administrative Services responded that (1) the
Civic Center Plaza facilities are currently
overcrowded since other childcare facilities in the
Tenderloin use these play areas and 2) Marin Day
Schools would need a waiver of State licensing
requirements to be able to use these play areas.
Furthermore, Ms. Hong notes that Marin Day
Schools has agreed to allow neighborhood
Tenderloin childcare facilities to use the proposed
two new City Hall exterior play areas.
In addition, the exterior play areas are proposed to
have wrought iron fencing surrounding the area, at
a total cost of $34,688. An alternative chain link
fence, at a total cost of $16,955, or less than half
the cost of the wrought iron fence, was rejected
BOARD OF SUPERVISORS
BUDGET ANALYST
48
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
because according to Mr. Nelson, it was not
architecturally consistent with the rest of City
Hall, and was determined to be less safe for the
children. The actual play equipment for the
children in the play areas is anticipated to cost
$25,864, including a playstructure for $8,752 and a
play maze for $7,427.
3. Furthermore, the budget details reviewed by the
Budget Analyst's Office reflected toy and children's
furniture costs that appear excessive. For example,
$190 for a set of five small trucks, $610 for a set of
nursery mini hollow blocks, $710 for a set of half
school unit blocks, $185 for Bouncy Birds, 32 small
chairs for the children for $2,036, or an average
cost of $64 per chair and $507 for aquariums. In
response, Ms. Hong reports that the childcare
facility furnishings will be consistent with the high
quality of the other furnishings in City Hall, and
that the Department of Administrative Services
and Marin Day School agreed to the need to
purchase only high quality toys and equipment
that would last for a long time and not require
replacement in the near future.
4. The interior construction cost estimate of
$90,000 includes a contingency of approximately 20
percent. Ms. Sherri Williams of the City Architect's
Office reports that this 20 percent contingency will
be needed for additional Americans With Disability
Act improvements (ADA) and fire safety
renovations. Ms. Williams notes that this interior
work will actually be completed by the Bureau of
Building Repair (BBR) and a contractor, ISEC, that
specializes in interior woodwork and equipment,
who has been working on the City Hall
renovations. The Budget Analyst also notes that
the budget for the two exterior play areas includes
a contingency factor of an unquantified amount.
The Budget Analyst therefore questions why the
subject request includes an additional five percent
contingency of $15,183, on top of these two other
construction contingencies. The Budget Analyst
therefore recommends that this additional five
BOARD OF SUPERVISORS
BUDGET ANALYST
49
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
percent contingency be eliminated for a savings of
$15,183.
5. Mr. Nelson reports that the proposed Child Care
Center will be able to accommodate a total of 49
children, based on the following breakdown by
ages:
Infant & Toddlers (2 mos.- 30 mos.) 21
Young Preschool (30 mos. - 3 V= yrs.) 12
Preschool (3 V: yrs. - 5 H yrs.) 16
Total 49
Mr. Nelson notes that it is likely that all 49
available spots for children will not be filled
immediately. However, based on a total requested
cost of $318,838, and assuming that all 49 spots are
eventually filled, it results in an average capital
expenditure of $6,507 per child.
6. Mr. Nelson reports that initially the City did not
receive any responses to the City Hall Child Care
Center Request For Proposal (RFP), until the date
was extended and more requests were issued.
Ultimately, the City only received two responses to
their RFP, one from Florence Crittenden Services
and one from Marin Day Schools. Mr. Nelson notes
that Florence Crittenden Services specializes in at-
risk youth, and was not determined to have
significant experience with infant day care services.
Marin Day Schools was selected as the operator of
the proposed City Hall Child Care Center, based on
a review panel process consisting of representatives
from the Department of Children, Youth and Their
Families, the Department of Administrative
Services, Department of Human Services and the
Mayor's Office, according to Mr. Nelson.
7. Under a pending three-year contract between the
City and Marin Day Schools, which would extend
from July 1, 1999 through June 30, 2002, Marin
Day Schools would pay the City $1 per year for the
proposed space and the City would be responsible
for renovations of the facility of up to $350,000. and
for providing all utilities, janitorial and
BOARD OF SUPERVISORS
BUDGET ANALYST
50
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
maintenance services. Under this agreement,
Marin Day Schools would collect all of the revenues
and pay all of the operating expenses. Mr. Nelson
notes that the Department of Children, Youth and
Their Families will be entering into this three-year
operating agreement with Marin Day Schools, to be
effective July 1, 1999, which would not be subject
to the Board of Supervisors approval. However, Mr.
Nelson reports that a resolution authorizing the
City to enter into a lease with Marin Day Schools
for Marin to pay the City $1 per year is currently
being prepared and will be subject to the approval
of the Board of Supervisors.
8. As shown in Attachment 1, provided by Marin
Day Schools, the estimated operating costs for this
facility is $385,000 the first year of operation,
increasing to $422,000 by the third year of
operation. Approximately 97 percent of the
operating costs, or $375,000 of the total $385,000
operating costs during the first year is anticipated
to be financed from tuition income. However, the
tuition income includes an annual $50,000 General
Fund subsidy (See Comment No. 10). The balance
of approximately three percent of the operating
costs will be financed from other revenues and
donations realized by Marin Day Schools.
9. Attachment 2, provided by Marin Day Schools
identifies the monthly tuition rates ranging from
$285 per child for two mornings for the preschool
children to $1,045 per child for five full days for the
infant/toddler program. However, since most of the
people using the facility are Likely to be full-time
City employees, it is likely that five full days of
care would be needed for their children.
Given the need for moderate child care costs for
City employees, the Budget Analyst questions the
high monthly costs for full-time care of between
$810 for preschool students to $1,045 for
infant/toddlers. Additionally, Marin Day Schools
charges a $100 annual activity fee and a $50
student registration fee. Mr. Nelson reports that
BOARD OF SUPERVISORS
BUDGET ANALYST
51
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
the proposed tuition rates are the same rates that
Marin Day Schools charges at its other facilities.
10. According to Mr. Nelson, beginning in FY 1999-
2000, the City, through the Department of
Administrative Services, will contribute an annual
General Fund subsidy of $50,000 to the proposed
Child Care Center to provide tuition scholarships
and subsidies for low-income families using the
City Hall Child Care Center. Mr. Nelson notes that
the Department budgeted $175,000 for six months
of tuition subsidies in FY 1998-99 for the City Hall
Child Care Center, but under the proposed plan,
this would be reduced to the currently projected
$50,000 annually. Mr. Nelson adds that the City's
$50,000 annual contribution is included as part of
the tuition income line item in Attachment 1.
11. Mr. Nelson reports that there is likely to be
more requests to place children in the City hall
Child Care Center than the 49 available slots.
Therefore, Ms. Hong notes that a priority system
has been developed by the City Hall Policy
Committee, which is comprised of representatives
from the Controller's Office, Mayor's Office,
Treasurer's Office, Department of Administrative
Services and the City Architect. Under this priority
system, first priority will be given to employees
who work in City Hall, including City employees
and non-City employees who work in the City Store
and cafes. Second priority will be given to City
employees who work in the Civic Center area, and
the third priority will be given to other City
employees. In addition, Mr. Nelson notes that of
the total 49 available childcare slots, five slots will
be set aside for children from the adjacent
Tenderloin neighborhood. However, in all cases,
Mr. Nelson reports that the actual selection of child
care applicants will be made by the Marin Day
Schools.
12. Although City Hall opened in early January of
1999, the City Hall Child Care Center is not
anticipated to open until July of 1999, or six
months later. Mr. Nelson reports that this delay
BOARD OF SUPERVISORS
BUDGET ANALYST
52
Memo to Finance and Labor Committee
May 5, 1999 Finance and Labor Committee Meeting
occurred due to safety concerns, since all of the
construction work was not completed in City Hall
when it opened in January of 1999, and due to the
operational difficulty for Marin Day Schools to
begin a Child Care Center in mid-year, rather than
after the completion of the regular school year.
13. The Budget Analyst raises the following
concerns about the requested release of reserve: (1)
there were only two responders to the City's RFP to
provide childcare services in City Hall, and only
one of the responders, Marin Day Schools, had
extensive experience in providing both
infant/toddler and preschool services, (2) the
facility has two food preparation areas, with a
refrigerator in each of the two food preparation
areas as well as two additional refrigerators in the
other two rooms, yet the children will be
responsible for bringing their own lunches to
school, and Marin Day will just be providing snacks
for the children, (3) two exterior play areas are
proposed, at a total cost of $158,350, although
directly across the street in the Civic Center Plaza,
the City recently constructed extensive play areas
for small children, at a cost of over $600,000 with
Open Space funds, (4) expensive furnishings,
equipment and toys are being selected for this
facility at a total cost of $81,169, (5) an additional
contingency of five percent is provided under this
subject request for all of the proposed expenditures,
at a cost of $15,183, which is on top of two other
contingencies previously allocated for the interior
and exterior construction projects, (6) the costs to
the participants of this child care program appear
high, with monthly costs for full-time child care
ranging between $810 to $1,045 per month per
child, as well as an additional annual activity fee of
$100 and an additional $50 student registration
fee.
Recommendation: At a minimum, reduce the request by $15,183 to
eliminate the additional five percent contingency,
as referenced in Comment Nos. 4 and 13 above.
Approval of the remaining request of $303,655 is a
policy matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
53
J999F ^ :S1
CC^r HLiniN. icw^
Q&lS
Attachment 1
F^
SAN FRANCISCO CITY HALL CHILD CARE CENTER </ ^ h^l
PROPOSED OPERATING BUDGETS **f r
fr
INCOME ^ ^ YEAR ONE
Tuition \* (.
Registration ^0
Activity Fees -4 U
Donations iTK 1 (4,000. 1
^
YEAR TWO YEAR THREE YEAR FOUR
290,000.00
3400.00
2,500.00
4.000.00
410.000.CO
4.000.00
3,000.00
5,000.00
<30.000.00
4.000.00
3,000.00
5,000.00
TOTAL INCOME
3S5.000.00
400,000.00
422,000.00
442000.CO
EXPENSE
Salaries
(230000.00)
290,000.00
305,000.00
317.0O0.C0
Payroll Taxes
24JJB&U0
25,100.00
27,000.00
28.000.00
Healin Insurance
sisoaoo
6,300.00
6,500.00
7.000.00
Wcuxers Comp.
2.000.00
3.100.00
2,500.00
3,600.00
Admin/Management
47.soaoo
50,000.00
52,500.00
55,000.00
Building & Grounds
1.000.00
1,000.00
1,500.00
3.00C.C0
Equipment
soaoo
500.00
1.000.00
1,400.00
Faculty Development
1,500.00
1.500.00
1.500.00
1,500.00
Faculty Incentives
1,200.00
i.2oaoo
1,200.00
1.500.00
Food
2,800:00
3,000.00
3,000.00
3.4C0.00
InstructicnaJ Supply
e.ooo.oo
6.000.00
6,500.00
.7,000.00
Insurance
3,600.00
3,700.00
3,800.00
4. 000. CO
Maintenance Supply
2,500.00
2.600.00
2700.00
3,000.00
OfTica Supply
1.200.00
1,200.00
1,500.00
1 ,500.00
Petty Cash
i.000.00
1.000.00
1.000.00
1,000.00
Printing & copying
1,200.00
1.200.00
1,200.00
1,50C.OO
Special Events
1, 800.00
2,000.00
2.000.00
2.000.00
Telephone
600.00
600.00
ecaoo
600.00
TOTAL EXPENSE
385,000.00
40o.ooaoo
422.000.00
442,000.00
54
Attachment 2
^ VPB ***** DAY SCHOOLS
SANEBANC3SC0 COTHAlXCAMKrc
September 1998 through Augiwisw
* Scholarships and sliding scale fees J?*^ 3 ?
=W scale fees are avails. p Iease see bdow
SCK^Tittt-cc
SCHEDULES
PRESCHOOL
Morning
Afternoon
Full
IKFANT/TODDLER
Morning
-Afternoon
Full
HOURS
7:30-12:30
12:30-6:00
7:30-6:00
7:30-12:30
12:30-6:00
7 3 0-6:00
JAYS PER WEEK
2 3 s
S225 S38S S525
^ S385 S525
5405 S575 J8 10
S33S S480 $685
5335 S480 $685
5480 S705 S1045
Covers Special Evenig
Drop In chad Care 10 hrs
Due in the Spring
YEARLY FEES
Transition and Preschool Only
Yearly Activity Fee «.,
Drop In Daycare Card f 1 *
Continuing Student Registration s 50
PLEASE NOTE
fc-ncial aid wheneveTT^bi??^ *"«*«»££ We or£' sc^Th ^
^ugh the school or bu^ ss ^T 003 ^ Sdl0,arefai P «^-^S^K-"S
long as funds are aS^X £ ™ ?* rded 0n a ** «5 fe^t?*
°r any other matt e^MOS 39^ Sn ? Wdc0TO to «* * « •n^ine/iSS ^ "■
Thank you. MDS 39 Dn ^ Street, San Francisco CA ^£g$g££
All tuitions are due on th «
*y o« your prompt pa^Un^ =* Qu ^ cMd — » «** and we — , ,
charged for tuhion pX rfJlr^S? 'J?* ^Sements are made, , CO ^T?* °
checks returned bv^h. T^ ^ ** ° f the raon ^ A S20 Check rZ ,Jj? Uxt Fee "
Please be^f r^" JPJJ- your coop«££ ^i^ fW "■
1,16 ^DXS.rxr^iundhQok for all polides and pro-^ °* ^
TOTAL P. 04
55
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
Item 16 - File 99-0424
Item: Hearing on the fiscal impact to provide one year of paid
maternity/paternity leave for employees of the City and
County of San Francisco and an unspecified tax incentive
amount for businesses that provide one year of paid
maternity/paternity leave for its employees.
Description: According the Office of the Sponsor, the subject hearing
has been called to consider the fiscal impact of providing
one year of paid maternity/paternity leave to City
employees as well as tax incentives to businesses who
provide similar maternity/paternity leave benefits to their
employees. The Budget Analyst's estimated cost for each
of these provisions is described below.
Estimated Cost to Provide One Year Paid
Maternitv/Paternitv Leave to Citv Employees
The Office of the Sponsor provided the following
additional details for use by the Budget Analyst in order
to estimate the fiscal impact of this proposal. One year of
paid leave would be granted for all City employees who
are mothers or fathers of newborns as well as for
employees who adopt a child under the age of 2 years.
The Office of the Sponsor suggested two potential
alternatives. Under one alternative, employees would be
paid their full annual salary and benefits for the paid
leave benefit and under the other alternative, employees
would be paid 60 percent of their annual salaries and
benefits for the paid leave benefit.
In order to determine the number of children born to City
employees and adoptions of children under the age of two
years, we consulted the City's Health Services System.
Based on the most recent data available, 613 children
under the age of two years were added to the Health
Services System in FY 1997-98.
According to the Controller's Office, the average annual
salary currently earned by a City employee is $48,334
with an additional $10,633 in fringe benefits (22 percent)
for a total of $58,967 per employee. Therefore, at an
BOARD OF SUPERVISORS
BUDGET ANALYST
56
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
average annual salary and benefit cost of $58,967 for each
employee and a total of 613 births and adoptions, the total
cost to the City to provide one year of maternity/paternity
leave at full salary and benefits would currently be
$36,146,771 annually. If the maternity/paternity leave
benefit paid employees 60 percent of their annual salary
and benefits, the current cost would be $21,688,063
annually.
The estimates provided above do not take into account
that children born to or adopted by City employees may
not have been enrolled in the City's offered health plans
and may instead have been enrolled under another health
plan not offered by the City. Therefore, the estimate of
613 births and adoptions by City employees in FY 1997-98
may have underestimated the number of children born to
or adopted by City employees and correspondingly may
underestimate the number of such employees who may
utilize the proposed one-year maternity/paternity leave
benefit.
In addition, the estimates provided do not include costs to
the City to backfill positions, as needed, which would be
temporarily vacated during an employee's maternity/
paternity leave.
Estimated Reduced Revenues to the Citv if the Citv
Were to Provide Tax Credits to Businesses Which
Provide One Year Paid Maternitv/Paternitv Leave
to Their Employees
Firms doing business in San Francisco currently pay the
City either a Payroll Tax or a Gross Receipts Tax,
whichever results in the higher tax liability, if then-
computed tax liability is $2,500 or more. If a business has
a tax liability of under $2,500, the business qualifies
under the Small Business tax exemption and pays no
Payroll or Gross Receipts Taxes to the City.
According to the Tax Collector's Office, approximately 88
percent of firms doing business in San Francisco qualify
for the Small Business tax exemption and therefore pay
no Payroll or Gross Receipts Taxes to the City. The Tax
BOARD OF SUPERVISORS
BUDGET ANALYST
57
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
Collector's Office advises that there are presently 7,731
businesses that have either a Payroll Tax or Gross
Receipts Tax liability of $2,500 or more annually and
therefore are required to pay such taxes to the City.
According to the Tax Collector's Office, such businesses
employ an estimated 311,937 employees in San Francisco.
The Tax Collector's Office reports that an estimated
53,727 businesses pay no Payroll or Gross Receipts Taxes
to the City because their computed tax liability is less
than $2,500. Such businesses employ an estimated 75,956
employees in San Francisco.
The Office of the Sponsor suggested a range of annual tax
credits between $500 and $10,000 in order to estimate the
fiscal impact of providing such tax benefits to businesses.
It is unknown at this time as to the number of businesses
which would provide one year of paid maternity /paternity
leave to their employees on the basis that such businesses
would receive a tax credit against their Payroll and Gross
Receipts Taxes owed to the City. The table below shows
the reduced annual tax revenues to the City which would
result depending on the amount of the annual tax credit
offered and the number of business which would receive
the tax credit.
Potential
Percentage and
Number of All
Businesses With
Payroll or Gross
Receipts Taxes of
$2,500 or More
Which Would
Receive a Tax
Tax Credit
Tax Credit
Tax Credit
Tax Credit
Credit*
of $500
of $1,000
of $5,000**
of $10,000**
1% (77)
$38,500
$77,000
$385,000
$770,000
5% (387)
$193,500
$387,000
$1,935,000
$3,870,000
10% (773)
$386,500
$773,000
$3,865,000
$7,730,000
50% (3.866)
$1,933,000
$3,866,000
$19,330,000
S38.660.000
100% (7.731)
$3,865,500
$7,731,000
S3S.655.000
S77. 310,000
* Based on the number of businesses which had a FT 1997-98 Payroll or Gross Receipts Tax
liability of $2,500 or more (7,731 businesses).
** Actual reduction in annual tax revenues may be lower than shown in table as some
businesses have tax liabilities which are less than the $5,000 or $10,000 tax credit and
therefore would not receive the full tax credit.
Note: According to the Tax Collector's Office, the total amount of actual Payroll and Gross
Receipts Tax revenues collected in FY 1997-98 were $215,613,703.
BOARD OF SUPERVISORS
BUDGET ANALYST
58
Memo to Finance Committee
May 5, 1999 Finance and Labor Committee Meeting
As noted earlier, it is unknown at this time as to the
number of businesses which would provide one year of
paid maternity/paternity leave to their employees on the
basis that such businesses would receive a tax credit
against their Payroll and Gross Receipts Taxes owed to
the City. However, as shown in the table above, if
between one percent and 100 percent of the 7,731
businesses which are liable for the payment of Payroll
and Gross Receipts Taxes to the City were to receive an
annual tax credit by providing paid maternity/paternity
leave benefits to their employees, the range of reduced
annual Payroll and Gross Receipts Tax revenues to the
City would be as follows:
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
Tax Credit Amount
$500
$1,000
$5,000
$10,000
Range
$38,500-$3,865,500
$77,000-$7,731,000
$385,000-$38,655,000
$770,000-$77,310,000
Harvey M. Rose
/£-
BOARD OF SUPERVISORS
BUDGET ANALYST
59
City and County of £an Francisco
Meeting Minutes
Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102-4689
Wednesday, May 12, 1999
10:00 AM
Regular Meeting
City Hall, Room 263
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
UUUUMbNISDE|p-r
JUN 1 6 1999
SAN FRANCISCO
PUBLIC LIBRARY
Meeting Convened
The meeting convened at 10:10 a.m.
CONSENT AGENDA
All matters listed hereunder constitute a Consent Agenda, are considered to be routine and will be acted upon
by a single roll call vote of the Committee. There will be no separate discussion of these items unless a
member of the Committee so requests, in which event the matter shall be removed from the Consent Agenda
and considered as a separate item.
990776 [Emergency Repair, Sewers, Various Streets]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
sewers on Keamy Street from Pacific Avenue to Washington Street, Columbus Avenue from Pacific Avenue
to Jackson Street, and Jackson Street between Columbus Avenue to Montgomery Street - $430,057. (Public
Utilities Commission)
(Fiscal impact.)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED...
990777 [Emergency Repair, Jackson Street Brick Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
bnck sewer on Jackson Street from Columbus Avenue to Keamy Street - $285,821. (Public Utilities
Commission)
(Fiscal impact.)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED...
City and County of San Francisco
Printed at 5:50 PM on 5/13/V9
Finance and Labor Committee
Meeting Minutes
May 12, 1999
990778 [Emergency Repair, Pine Street Brick Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
brick sewer on Pine Street from Montgomery Street to Sansome Street - S3 1 1,921. (Public Utilities
Commission)
(Fiscal impact.)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED...
990779 [Emergency Repair, 4th Street Brick Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
brick sewer on 4th Street between Folsom Street and Howard Street - 5133,040. (Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
RECOMMENDED...
990780 [Emergency Repair, Easement Sewers, Various Locations!
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
easement sewers bordered by Baltimore Way, Canyon Drive, Cordova Street, and Naylor Street - S68.429.
(Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED...
990781 [Emergency Repair, Broderick Street Sewer]
Resolution approving the expenditure of funds for the emergency work to replace the structurally inadequate
sewer on Broderick Street from Broadway to Vallejo Street - S77.650. (Public Utilities Commission)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED...
990782 [Emergency Repair. Davidson, Custer and Rankin Streets Sewerage System]
Resolution approving the expenditure of funds for the emergency work to perform improvements to the
hydraulically inadequate sewerage system in the Davidson. Custer and Rankin collection system -
$1,834,838.80. (Public Utilities Commission)
(Fiscal impact.)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
RECOMMENDED...
The foregoing items were acted upon by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
REGULAR AGENDA
City and County of San Francisco
Primed at 5:51 PM on 5/13/V9
Finance and Labor Committee
Meeting Minutes
May 12, 1999
990801 [Reserved Funds, Dept of Administrative Services]
Supervisor Yee
Hearing to consider release of reserved funds, Department of Administrative Services, (Fiscal Year 1998-1999
Budget), in the amount of $350,000 to fund the City Hall Child Care Center. (Administrative Services
Department)
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
5/5/99, CONTINUED. Heard in Committee Speakers: Harvey Rose, Budget Analyst; Debra Alvarez, Mayor's Office of Children,
Youth & Their Families; Supervisor Bierman, Supervisor Ammiano; Supervisor Yee; Steve Nelson, Department of Administrative
Services; Joe Wilson, Coleman Advocates. Continued to May 12, 1999.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Amend to reduce the request by SI 5. 183 to
eliminate the additional five percent contingency; release $303,655.
APPROVED AND FILED.
990880 [City Hall Child Care Facility License Agreement)
Supervisors Teng, Bierman, Becerril
Ordinance authorizing and approving a license agreement between the City and County of San Francisco, as
licensor, and Marin Day Schools, as licensee, for a child care facility located on the ground floor level of City
Hall and at an additional outdoor facility area.
5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Supervisor Teng; Deborah Alverez, Director,
Mayor's Office ot Children, Youth and Their Families; Supervisor Ammiano; Steve Nelson, Director
Administrative Services; Supervisor Bierman; Supervisor Yee. In Support: Sue Humbert-Rico, Child Care
Advocate; Michele Rutherford, Department of Human Services; Verna Clark. Children's Council of San
Francisco; Donna Cahill, Family Day Home.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990881 [City Hall Child Care Center Outdoor Play Spacel
Supervisors Teng, Bierman, Becerril
Ordinance exempting the City Hall Child Care Center Outdoor Play Space from the competitive bidding
requirements of the San Francisco Administrative Code.
5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Teng; Deborah Alverez, Director.
Mayor's Office ot Children, Youth and Their Families; Supervisor Ammiano; Steve Nelson, Director
Administrative Services; Supervisor Bierman; Supervisor Yee. In Support: Sue Humbert-Rico, Child Care
Advocate; Michele Rutherford, Department of Human Services; Verna Clark, Children 's Council of San
Francisco; Donna Cahill, Family Day Home.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Printed at 5:51 PM on 5/I3V9
Finance and Labor Committee
Meeting Minutes
May 12, 1999
990803 [Kezar Parking Lot]
Supervisor Brown
Resolution authoring and approving the management agreement by and between the City and County of San
Francisco and U.S. Parking, Inc., for the "Kezar Parking Lot" located at Stanyan and Frederick Streets.
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Joel Robinson. Acting Director. Recreation
and Park; Supervisor Ammiano; Supervisor Yee. Opposed: Mark Gleason. Teamsters, Local 65. Continued
to May 26, 1999.
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
982026 [PUC Commercial Paper Issuance)
Resolution approving the issuance of up to $150,000,000 aggregate principal amount outstanding at any one
time of San Francisco Public Utilities Commission Commercial Paper Notes (Water Series) pursuant to
Chapter 84 of Part I of the San Francisco Municipal Code in one or more series for the purpose of financing
and refinancing certain capital improvements related to the Water Enterprise: approving the maximum interest
rate thereon; and related matters. (Public Utilities Commission)
12/2/98, RECEIVED AND ASSIGNED to Finance Committee
12/16/98, CONTINUED TO CALL OF THE CHAIR. Speakers: None.
1/25/99, TRANSFERRED to Finance and Labor Committee.
4/22/99, SUBSTITUTED.
4/22/99, ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Bill Barry, Assistant General Manager
Finance, Public Utilities Commission; Supervisor Yee; Ed Harrington, Controller; Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990784 [1999 Water Revenue Bonds Issuance)
Resolution approving the issuance of not to exceed 5140,000,000 aggregate principal amount of San Francisco
Water Revenue Bonds to be issued by the Public Utilities Commission of the City and County of San
Francisco; affirming covenants contained in the indenture pursuant to which the Water Revenue Bonds are
issued; authorizing the execution and delivery of a continuing disclosure certificate; and authorizing the taking
of appropriate actions in connection therewith; and related matters. (Public Utilities Commission)
(Fiscal impact.)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Bill Barry, Assistant General Manager
Finance, Public Utilities Commission; Supervisor Yee; Ed Harrington, Controller; Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Printed at 5.5/ ftV on S/13-V9
Finance and Labor Committee
Meeting Minutes
May 12, 1999
990045 [Pre-tax Treatment of Buy Backs)
Supervisor Yaki
Ordinance amending Administrative Code Section 16.29-5 and adding Section 16.61-4 concerning pre-tax
treatment of buy backs.
(Amends Section 16.29-5 and adds Section 16.61-4.)
1/1 1/99, ASSIGNED UNDER 30 DAY RULE to Finance Committee, expires on 2/10/1999.
1/25/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 2/10/1999.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yaki; Claire Murphy. Executive
Director. Retirement System.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990737 [Street Artists Fundi
Supervisor Teng
Ordinance amending Administrative Code by adding Section 10.1 17-123, establishing the Street Artists Fund
as a special fund for the purpose of receiving all funds received by the San Francisco Arts Commission Street
Artists Program pursuant to Article 24 of the San Francisco Police Code, and providing for interest
accumulation therein.
(Adds Section 10.117-123.)
4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers; Harvey Rose. Budget Analyst; Matthew Lonner, Aide to Supervisor Teng;
Rich Newirth, Director, Art Commission; William Clark; Bob Clark; Ed Harrington, Controller; Supervisor
Ammiano; Supervisor Yee. Amend on page 2. beginning on line 10; delete "in excess of $50,000, remaining in
said fund at the close of any business day"; same title.
AMENDED.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990806 [Ground Lease, 1820 Post Street)
Supervisor Brown
Resolution approving the Redevelopment Agency of the City and County of San Francisco's lease of the land
at Assessor's Block 684, Lot 45, commonly known as 1820 Post Street, to GGA 1820 Post, a California
Limited Partnership, for 50 years for the purpose of preserving a housing development for very low and low
income households.
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jim Morales, Director, Redevelopment
Agency; Supervisor Yee; Supervisor Bierman; Supervisor Ammiano In Support: Gordon Chin. Executive
Director, Chinatown Redevelopment Center; Gary Kitahata. Japanese Culture Center; Dolores Ivy, President.
Golden Gate Apartment Association; James Perini.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Printed at StSl PM on S/I3.V9
Finance and Labor Committee
Meeting Minutes
May 12, 1999
990443 [Resource Efficient City Building]
Supervisors Ammiano, Bierman, Leno, Katz, Nevvsom, Yee
Ordinance amending Administrative Code by adding Chapter 82, Sections 82.1 thru 82.7, establishing
resource efficiency requirements for City-owned facilities and City leaseholds.
(Adds Chapter 82, Sections 82.1 thru 82.7.)
(Companion measure to File 990444.)
3/8/99, ASSIGNED UNDER 30 DAY RULE to Public Health and Environment Committee, expires on 4/7/1999.
4/28/99, TRANSFERRED to Finance and Labor Committee. President requests calendaring at the Finance and Labor Committee
meeting of May 12, 1999.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Bill Burke, Archetec;
Francesco Victor, Director. Department of Environment; Tara Lamont, Department of Archetecture; Cal
Brumhead, Bureau of Energy conservation; Daniell Baurer, Bureau of Energy Conservation; David Assman;
Solid Waste Management; Beryl Magilavy, Sustainable City; Kim Knoxs, San Francisco Water Department
Amendment of the Whole making technical corrections.
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990444 [Resource Efficient Pilot Projects]
Supervisors Ammiano, Bierman, Katz, Leno, Nevvsom, Yee
Ordinance amending Administrative Code by adding Section 82.8 establishing a pilot program to promote
resource efficiency in construction of selected City-owned facilities and City leaseholds.
(Adds Section 82.8.)
(Companion measure to File 990443.)
3/8/99, ASSIGNED UNDER 30 DAY RULE to Public Health and Environment Committee, expires on 4/7/1999.
4/28/99, TRANSFERRED to Finance and Labor Committee. President requests calendaring at the Finance and Labor Committee of Mav
12, 1999.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Bill Burke, Architect;
Francesco Victor, Director, Department of Environment; Tara Lamont, Department of Archetecture; Cal
Brumhead, Bureau of Energy conservation; Daniell Baurer, Bureau of Energy Conservation; David Assman;
Solid Waste Management; Beryl Magilavy, Sustainable City; Kim Knoxs. San Francisco Water Department.
Amendment of the Whole making technical corrections.
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990732 [Reserved Funds, Municipal Railw ay |
Hearing to consider release of reserved funds, Municipal Railway, (Federal Surface Transportation funds, File
94-92-8, Resolution No. 906-92), in the amount of $423,862, to fund the MUNI Metro Tunnel modifications.
(Public Transportation Commission)
4/15/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
5/5/99, CONTINUED. Continued to May 12, 1999 at the request of the Department.
Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Jerry Levine. Municipal Railway; Supervisor
Yee. Amended to release $468,862.
APPROVED AND FILED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Printed at 5:51 PM on 5/13/99
Finance and Labor Committee
Meeting Minutes
May 12, 1999
ADJOURNMENT
The meeting adjourned at 1 :35 p.m
City and County of San Francisco
Printed at 5:5/ PM on 5/13/99
Public Library, Gov't Information Ctr.. 5 th Fir.
Attn: Susan Horn, Dept. 41
I
CITY AND COUNTY
OF SAN FRANCISCO
^BOARD OF SUPERVISORS
BUDGET ANALYST
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
May 7, 1999
TO: ^Finance and Labor Committee
FROM: ^Budget Analyst
SUBJECT: May 12, 1999 Finance and Labor Committee Meeting
Item 1 - File No. 99-0776
DOCUMENTS DEPT.
MAY 1 7 1999
SAN FRANCISCO
PUBLIC LIBRARY
Department:
Item:
Amount:
Source of Funds:
Description:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Department of Parking and Traffic (DPT)
Resolution approving tbe expenditure of funds for the
emergency work to replace three structurally inadequate
sewers on (1) Kearney Street between Pacific Avenue and
Washington Street, (2) Columbus Avenue between Pacific
Avenue and Jackson Street, and (3) Jackson Street
between Columbus Avenue and Montgomery Street.
$430,057
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
June 16, 1998, the sewers located on (1) Kearney Street
between Pacific Avenue and Washington Street, (2)
Columbus Avenue between Pacific Avenue and Jackson
Street, and (3) Jackson Street between Columbus Avenue
and Montgomery Street failed, and immediate
replacement was required in order to protect the health.
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Budget:
welfare, and property of the citizens of San Francisco.
The PUC declared an emergency on June 24, 1998. In
accordance with Section 6.30 of the Administrative Code,
the PUC initiated expedited contract procedures, and
awarded a contract to Shaw Pipeline, Inc. which
submitted the lowest quotation in the amount of
$338,340.
The total actual project cost was $430,057, including
$365,407 in actual construction costs (or $27,067 more
than the contract award amount, see Comment No. 2),
$57,650 for DPW engineering and construction
management costs and $7,000 for DPT traffic control
costs.
A summary of this budget is as follows:
Construction Contract $365,407
DPW Bureau of Engineering 32,650
DPW Bureau of Construction Management 25,000
DPT Traffic Control 7,000
Total
$430,057
Comments:
1. Invitations for proposals were faxed to 22 contractors
on June 30, 1998. Three quotations were received by
PUC from qualified contractors on July 2, 1998. PUC
reports that Shaw Pipeline, Inc. submitted the lowest
quotation and was awarded the contract in the amount of
$338,340. The following table lists the contractors who
submitted quotations, the amounts of the quotations, and
the MBE/WBE/LBE status of the contractors:
Contractor Quotation
Shaw Pipeline, Inc. $338,340
Darcy & Harty Construction $348,970
J.M.B. Construction $414,009
MBE/LBE Status
LBE
LBE
MBE/LBE
2. PUC reports that although the contract was awarded
in the amount of $338,340, the final contract cost, after
adjustment for actual quantities used during
construction, was $365,407 or $27,067 more than the
contract amount of $338,340.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
3. Mr. P.T. Law of the DPW advises that due to various
delays in receiving expenditure documentation from the
contractor, the PUC is requesting approval of this
resolution approximately five months after the
construction work was completed on December 14, 1998.
4. The attached memorandum, provided by Mr. Law,
explains why this sewer replacement work was considered
an emergency, thereby not requiring the contract to be
awarded under the City's formalized competitive bidding
procedures, in view of the fact that an emergency was
declared on June 24, 1998, but the work, except for sewer
stabilization, did not begin until October 12, 1998, which
is over three months from the time that DPW received
contractor quotations on July 2, 1998.
Recommendation: Approval of the proposed resolution is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
us/Ur-/yy 13:4c! bl-DFLI BOE HYDRAULICS ■» 415 252 0461
City and County ol San Francisco
Willie Lewis Brown, Jr., Mayor
Mark A. Primeau, AIA, Director and City
Architect
Attachment
9feVi e (415)354-8355
{gyp* FAX {4 1 5) 554-6308
Department of Public Works
Bureau of Engineering
, c „o^ Hydraulic Section
1680 M^sion Strset, 2nC Root
San Francisco. CA M103
Norman Chan, Section Manager
TO:
FROM:
SUBJECT:
Gabe Cabrera
Budget Analyst
DATE: May 7, 1999
P.T.Law/V/^
Bureau offcngineering, Hydraulic Section
Contract No. CW.193E
Kearny / Columbus /Jackson Ero.rgu.cy Sewer Replacement
awarded to the contract^ it w Ta te^o™ S ST T ^_" " S °° n " the con *~ —
completed. The emergency stabS on C Z£Z T T * peraUeat S4Wcr «^— I could be
severely restneted. Aus PU C r^ZTt '"^'^ ""^ !o the pub,,c ' but *»• -»5 was
procedures uthi,ng a ^^SCl^E3" h . , ^^ C ^ Bbc «" "^ e2«S
project schedule, an emergency con J^sS^ead appro.mately d> more months to the
s^=^^ - h • ~ — Ma
begin construction on August 7 1998 X r ,I \ '" 8 O^™ 1 ^ Sha* Pipeline was scheduled to
reasons for the mree-mouSy !n con^n "' *"* ^ ** **— Tn ~ — ^ P*«S
^^A^e^ -**- Stree: ce^een
to mimmize disruptions to the neighborhood land ^cZLLa " 8 " d ru f hed on August 2*. 1998. In order
flowed m the area at any o^in^p^^
Construcuon Co. finished their work. Meanwhile^ht of r ^ n ° UCe t0 P™ ^ **« -'MB
-section until they could move in £££ ^ 2g?cSSS ^ °° "* ^ ^
ZZttS ZZSZ Strr*? of f f ~ ° f «- — -—
ssar •* ~ ™-- stLsaa: s km
If you have any questions, please call me at 554-8347 or rhr »»^ -~
mc ai J04-e>»/ or the project engineer. Thomas Won, M 554-8275.
cc: Thomas Won
MO to-^AfO C.HAK
CHft.;sTiNt£-oa^(^
Post-It* Fax Note
customer sarvKg ana «™„ wus i/npro ^
Customer Service T
To
Pnone
7671 g ^-/ -y rgr-- x
'jr^^?^-?
<3£^ &gZE£s£3gE&.
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 2 - File No. 99-077'
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Comments:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving the expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Jackson Street between Columbus Avenue and
Kearny Street.
$285,821
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
June 16, 1998, the sewer located on Jackson Street
between Columbus Avenue 'and Kearney Street failed,
and immediate replacement was required in order to
protect the health, welfare, and property of the citizens of
San Francisco. The PUC declared an emergency on June
16, 1998. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures, and awarded a contract to J.M.B.
Construction, Inc. in the amount of $212,050.
The total actual project cost was $285,821, including
$237,271 in actual construction costs (or $25,221 more
than the contract award amount, see Comment No. 2),
$20,650 for DPW engineering costs and $27,900 for DPW
construction management and inspection costs.
A summary of this budget is as follows:
Construction Contract $237,271
DPW Bureau of Engineering 20,650
DPW Bureau of Construction Management
Construction Management 5,900
Contract for Construction Inspection 22.000
Total $285,821
1. Invitations for proposals were faxed to 5 contractors on
June 16, 1998. According to Mr. P.T. Law of DPW,
because the emergency at Jackson Street required
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
immediate remedial action to ensure public safety, only
these five contractors were contacted by PUC for their
immediate availability and past construction experience.
Two quotations were received by PUC from qualified
contractors on June 17, 1998. PUC reports that Shaw
Pipeline, Inc. submitted the lowest quotation in the
amount of $201,125. However, according to Mr. Law,
after application of business enterprise preferences in
accordance with Chapter 12D of the San Francisco
Administrative Code, J.M.B. Construction, Inc., which
submitted the second lowest quotation, was awarded the
contract in the amount of $212,050. A preference of
approximately $21,205 or 10 percent was applied to the
J.M.B. Construction, Inc. quotation, resulting in the
lowest adjusted quotation of $190,845. The following
table lists the contractors who submitted quotations, the
amounts of the quotations and the MBEAVBE/LBE status
of the contractors:
Contractor Quotation MBE/LBE Status
Shaw Pipeline, Inc. $201,125 LBE
J.M.B. Construction, Inc. $212,050 MBE/LBE
2. As noted above, PUC awarded the contract in the
amount of $212,050. However, the final contract cost was
$237,271 (or $25,221 more than the contract amount of
$212,050) because, according to Mr. P.T. Law of DPW,
DPW requested a change order to the contract for the
contractor to perform unexpected additional work
repairing a side sewer that runs directly beneath the
damaged main sewer.
3. PUC reports that the replacement of the damaged
sewer began on June 17, 1998 and was completed on
August 28, 1998.
4. Mr. Law advises that due to various delays in
receiving expenditure documentation from the contractor,
the PUC is requesting approval of this resolution over
eight months after the construction work was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 3 - File No. 99-0778
Department:
Item.:
Amount:
Source of Funds:
Description:
Budget:
Comments:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving tbe expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Pine Street between Montgomery and Sansome
Streets.
$311,921
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
June 8, 1998, the sewer located on Pine Street between
Montgomery and Sansome Streets failed, and immediate
replacement was required in order to protect the health,
welfare, and property of the citizens of San Francisco.
The PUC declared an emergency on June 9, 1998. In
accordance with Section 6.30 of the Administrative Code,
the PUC initiated expedited contract procedures, and
awarded a contract to J.M.B. Construction, Inc. in the
amount of $255,705.
The total actual project cost was $311,921, including
$253,771 in actual construction costs (or $1,934 less than
the contract award amount, see Comment No. 2), $29,150
for DPW engineering and $29,000 for DPW construction
management and inspection costs.
A summary of this budget is as follows:
Construction Contract
DPW Bureau of Engineering
DPW Bureau of Construction Management
Construction Management
Contract for Construction Inspection
Total
$253,771
29,150
3,000
26.000
$311,921
1. Invitations for proposals were faxed to 22 contractors
on June 17, 1998. Two quotations were received by PUC
from qualified contractors on June 19, 1998. PUC reports
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
that Darcy & Harty Construction submitted the lowest
quotation in the amount of $242,665. However, according
to Mr. P.T. Law of DPW, after application of business
enterprise preferences in accordance with Chapter 12D of
the San Francisco Administrative Code, J.M.B.
Construction, Inc., which submitted the second lowest
quotation, was awarded the contract in the amount of
$255,705. A preference of approximately $25,571 or 10
percent was applied to the J.M.B. Construction, Inc.
quotation, resulting in the lowest adjusted quotation of
$230,134. The following table lists the contractors who
submitted quotations, the amounts of the quotations and
the MBE/WBE/LBE status of the contractors:
Contractor Quotation MBE/LBE Status
Darcy & Harty Construction $242,665 LBE
J.M.B. Construction, Inc. $255,705 MBE/LBE
2. PUC reports that although the contract was awarded
in the amount of $255,705, the final contract cost, after
adjustment for actual quantities used during
construction, was $253,771 or $1,934 less than the
contract amount of $255,705.
3. PUC reports that the replacement of the damaged
sewer began on June 22, 1998, and was completed on July
29, 1998.
4. Mr. Law advises that due to various delays in
receiving expenditure documentation from the contractor,
the PUC is requesting approval of this resolution over
nine months after the construction work was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
Ma}' 12, 1999 Finance and Labor Committee Meeting
Item 4 - File No. 99-0779
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Comments:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving tbe expenditure of funds for tbe
emergency work to replace a structurally inadequate
sewer on 4tb Street between Folsom and Howard Streets.
$133,040
FY 1998-99 PUC Repair and Replacement Fund
Tbe Public Utilities Commission (PUC) advises tbat on
January 15, 1998, tbe sewer located on 4tb Street
between Folsom and Howard Streets failed, and
immediate replacement was required in order to protect
the health, welfare, and property of the citizens of San
Francisco. The PUC declared an emergency on January
15, 1998. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures, and awarded a contract to Shaw
Pipeline, Inc. which submitted the lowest quotation in the
amount of $103,185.
The total actual project cost was $133,040, including
$99,040 in actual construction costs (or $4,145 less than
the contract award amount, see Comment No. 2) and
$34,000 for DPW engineering and construction
management costs.
A sum mar}' of this budget is as follows:
Construction Contract $99,040
DPW Bureau of Engineering 18,000
DPW Bureau of Construction Management 16.000
Total $133,040
1. Invitations for proposals were faxed to 21 contractors
on January 17, 1998. Four quotations were received by
PUC from qualified contractors on January 20, 1998.
PUC reports that Shaw Pipeline, Inc. submitted the
lowest quotation and was awarded the contract in the
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
amount of $103,185. The following table lists the
contractors who submitted quotations, the amounts of the
quotations, and the MBE/WBE/LBE status of the
contractors:
Contractor Quotation
Shaw Pipeline. Inc. $103,185
Uniacke Construction, Inc. $105,450
Darcy & Harty/San Luis JY $115,991
Harty Pipelines, Inc. $118,834
MBE/LBE Status
LBE
LBE
MBE/LBE
MBE/LBE
2. PUC reports that although the contract was awarded
in the amount of $103,185. the final contract cost, after
adjustment for actual quantities used during
construction, was $99,040 or $4,145 less than the contract
amount of $103,185.
3. PUC reports that the replacement of the damaged
sewer began on January 28, 1998, and was completed on
February 17, 1998.
Recommendation:
4. Mr. P.T. Law of DPW advises that due to various
delays in receiving expenditure documentation from the
contractor, the PUC is requesting approval of this
resolution over fourteen months after the construction
work was completed.
Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
10
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 5 - File No. 99-0780
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Comments:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving the expenditure of funds for the
emergency work to replace two structurally inadequate
sewers bordered bj r Baltimore Way, Canyon Drive,
Cordova and Naylor Streets.
$68,429
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
February 16, 1998, the two sewers bordered by Baltimore
Way, Canyon Drive, Cordova and Naylor Streets failed,
and immediate replacement was required in order to
protect the health, welfare, and property of the citizens of
San Francisco. The PUC declared an emergency on
February 27, 1998. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures, and awarded a contract to K.J.
Woods Construction which submitted the lowest
quotation in the amount of $46,990.
The total actual project cost was $68,429, including
$46,279 in actual construction costs (or $711 less than the
contract award amount, see Comment No. 2) and $22,150
for DPW engineering and construction management costs.
A summary of this budget is as follows:
Construction Contract $46,279
DPW Bureau of Engineering 10. 150
DPW Bureau of Construction Management 12.000
Total $68,429
1. Invitations for proposals were faxed to 16 contractors
on March 9, 1998. Four quotations were received by PUC
from qualified contractors on March 11, 1998. PUC
reports that K.J. Woods Construction submitted the
lowest quotation and was awarded the contract in the
BOARD OF SUPERVISORS
BUDGET ANALYST
11
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
amount of $46,990. The following table lists the
contractors who submitted quotations, the amounts of the
quotations, and the MBEAVBE/LBE status of the
contractors:
Contractor Quotation MBE/LBE Status
K.J. Woods Construction $46,990 LBE
Harty Pipelines, Inc. $62,445 WBE/LBE
Darcy & Harty Construction $71,935 LBE
Troy's Contracting $85,147 MBE/LBE
2. PUC reports that although the contract was awarded
in the amount of $46,990, the final contract cost, after
adjustment for actual quantities used during
construction, was $46,279 or $711 less than the contract
amount of $46,990.
3. PUC reports that the replacement of the two damaged
sewers began on March 17, 1998, and was completed on
April 6, 1998.
4. Mr. P.T. Law of DPW advises that due to various
delays in receiving expenditure documentation from the
contractor, the PUC is requesting approval of this
resolution over thirteen months after the construction
work was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
12
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 6 - File No. 99-0781
Department:
Item:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving tbe expenditure of funds for the
emergency work to replace a structurally inadequate
sewer on Broderick Street between Broadway and Vallejo
Streets.
Amount:
Source of Funds:
Description:
Budget:
$77,650
FY 1998-99 PUC Repair and Replacement Fund
The Public Utilities Commission (PUC) advises that on
March 6, 1998, the sewer located on Broderick Street
between Broadway and Vallejo Streets failed, and
immediate replacement was required in order to protect
the health, welfare, and property of the citizens of San
Francisco. The PUC declared an emergency on March 9,
1998. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures, and awarded a contract to K.J.
Woods Construction which submitted the lowest
quotation in the amount of $56,920.
The total actual project cost was $77,650, including
$54,000 in actual construction costs (or $2,920 less than
the contract award amount, see Comment No. 2) and
$23,650 for DPW engineering and construction
management costs.
A summary of this budget is as follows:
Construction Contract $54,000
DPW Bureau of Engineering 13,650
DPW Bureau of Construction Management 10.000
Comments:
Total
$77,650
1. Invitations for proposals were faxed to 22 contractors
on March 16, 1998. Two quotations were received by
PUC from qualified contractors on March 17, 1998. PUC
reports that K.J. Woods Construction submitted the
BOARD OF SUPERVISORS
BUDGET ANALYST
13
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
lowest quotation and was awarded the contract in the
amount of $56,920. The following table lists the
contractors who submitted quotations, the amounts of the
quotations, and the MBE/WBE/LBE status of the
contractors:
Contractor Quotation MBE/LBE Status
K.J. Woods Construction $56,920 LBE
Darcy & Harty/San Luis JY $64,635 MBE/LBE
2. PUC reports that although the contract was awarded
in the amount of $56,920, the final contract cost, after
adjustment for actual quantities used during
construction, was $54,000 or $2,920 less than the contract
amount of $56,920.
3. PUC reports that the replacement of the damaged
sewer began on March 23, 1998 and was completed on
April 13, 1998.
4. Mr. P.T. Law of DPW advises that due to various
delays in receiving expenditure documentation from the
contractor, the PUC is requesting approval of this
resolution approximately thirteen months after the
construction work was completed.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
14
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 7 - File No. 99-0782
Department:
Item:
Public Utilities Commission (PUC)
Department of Public Works (DPW)
Resolution approving tbe expenditure of funds for the
emergency work to perform immediate remedial
improvements to the sewer s\ T stem located near Davidson,
Custer and Rankin Streets.
Amount:
Source of Funds:
$1,834,839
Previoush* reserved funds from the sale proceeds of 1998
PUC Sewer Revenue Bonds
Description:
According to Mr. P.T. Law of the DPW, Davidson, Custer
and Rankin Streets have been prone to flooding during
moderate to heavy rainfall storms because the sewer
system there is unable to adequately support the
rainwater runoff from such storms. Mr. Law advises that
this sewer system required immediate remedial
improvements before the start of another rainy season in
order to prevent further flooding of Davidson, Custer and
Rankin Streets and thereby protect the health, welfare
and property of the citizens of San Francisco. As such, on
March 3, 1998, PUC declared that an emergency existed
at the sewer system located near Davidson, Custer and
Rankin Streets. In accordance with Section 6.30 of the
Administrative Code, the PUC initiated expedited
contract procedures for the subject emergency work, and
awarded a contract to A. Ruiz Construction in the amount
of $986,353.
BOARD OF SUPERVISORS
BUDGET ANALYST
, i"
15
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Budget:
The total actual project cost was $1,834,839, including
$1,253,317 in actual construction costs (or $266,964 more
than the contract award amount, see Comment No. 2),
$355,232 for DPW engineering and construction
management costs and $226,290 for various other project
costs.
A summary of this budget is as follows:
Construction Contract $1,253,317
DPW Bureau of Engineering 215,000
DPW Bureau of Construction Management 140,232
Other Project Costs 226.290
Total
$1,834,839
Comments:
The Attachment, provided by DPW, contains further
budget details to support this 1,834.839 budget.
1. Invitations for proposals were faxed to 11 contractors
on March 31, 1998. Five quotations were received by
PUC from qualified contractors on April 10, 1998. PUC
reports that A. Ruiz Construction submitted the second
lowest quotation, but was awarded the contract in the
amount of $986,353. Willie Electric Company, the lowest
bidder, was rejected as a non-responsive firm because the
firm did not provide an acceptable performance bond,
according to Mr. Law. The following table lists the
contractors who submitted quotations, the amounts of the
quotations and the MBEAVBE/LBE status of the
contractors:
Contractor
Willie Electric Company
A. Ruiz Construction
Ranger Pipeline / Equivel
Grading & Paving JY
Darcy & Harty /
San Luis JY
Marinship Construction
Quotation MBE/LBE Status
$803,725
$986,353
$1,137,590
$1,218,021
$1,644,595
MBE/LBE
MBE/LBE
MBE/LBE
MBE/LBE
BOARD OF SUPERVISORS
BUDGET ANALYST
16
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
2. As noted above, PUC awarded the contract in the
amount of $986,353. However, the final contract cost was
$1,253,317 (or $266,964 more than the original contract
amount of $986,353) because, according to Mr. Law, the
DPW requested a change order to the contract for the
contractor to perform unanticipated additional work
replacing side sewers, installing water pumps and
modifying the existing rainwater and sewage collection
tank in order to prevent further failures of the sewer
system at Davidson, Custer and Rankin Streets.
3. PUC reports that the necessary work on the sewer
system began on May 4, 1998, and was completed on May
6, 1999.
Recommendation: Approval of the proposed resolution is a policy matter for
the Board of Supervisors since the contract, which was
not awarded under the City's formalized competitive
bidding procedures, was over $1.2 million and the
emergency project took over one year to its completion.
BOARD OF SUPERVISORS
BUDGET ANALYST
17
eS/BS^SS 16:35 SFDFU BCE HYDRAULICS * 413 <^ fcWbl NO. 545 £27
Attachment
Page 3 PUC Calendar Item Number:
Deoarunest: Uriiinc Fnynesnug Bureau
Project: CW-K8, Rankin Drainage Basin Improveraest
Emergency Sewer Work
As shown, the cost of this project is projected to be SI.334,838.80:
Bureau of Engineering (Planning, Design, and Construction Support i S 2".5,0C0.C0
Bureau of Construction Management (Construction Inspection) S ]4C JL32.00
Department of Parking &. Traffic (Traffic Routing Specifications) S *;C,000.00
Construction Contract Cost S 1.253.3'. 6. 8C
Sewer Spot Repair Contract S 40.00C.OC
Consultant - Don Todd Associates (Construction Management) S ^O.COO.OO
Hetch Hetchy (Provide Power for Pump Operahon) S l-,290.00
Purchasing (Sewer Manhole Covers Molds) S 2,CC0.C0
Public Utilities Commission (Project Management) 5 5C.000.CO
Clean Water Department (Pump Design) S 50.OOC.0C
Other Direct Charge; rPerrnittmg & Various Utility Clearance Fees': S 20.00C 00
Total Project Cost SI ,834,838.80
This project is pan of the Clean Water Program's sewer replacement program. Funds arc available from
the 1998 Sewer Revenue Bond Fund (SOCPF/883, FAMIS Project No. CENCMPRK49 Job Od~\"o
1449N). '
18
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 8 - File 99-0801
Note: This item was continued at the May 5, 1999 Finance and Labor
Committee Meeting.
Department:
Item:
Amount:
Source of Funds:
Budget:
Description:
Comments:
Department of A dminis trative Services
Department of Children, Youth and Their Families
Request for release of $318,838 to complete the
construction, equipment and fxu-nishings for the
City Hall Child Care Center.
$318,838
General Fund
Exterior Playground
Interior Improvements
Fixtures, Furnishings &. Equip
Subtotal
5 Percent Contingency
Total
$ 158,350
90,000
55.305
$303,655
15.183
S318,838
The proposed request would release $318,838 of the
total of $350,000 which was placed on reserve in
the FY 1998-99 Department of Administrative
Sendees budget for a Child Care Center in City
Hall. According to Mr. Steve Nelson of the
Department of Administrative Services, these
funds were placed on reserve for the City Hall
Child Care Center because, at the time of the FY
1998-99 budget deliberations, the Department
could not identify (a) the specific childcare facility
requirements and (b) the associated costs that
would be necessary to complete such a facility.
The new Child Care Center would consist of
approximately 3,500 square feet located in the
northwest quadrant of the basement of City Hall
with the main entrance and access from McAllister
Street. In addition, the Child Care Center would
have two outdoor pla3 T areas on the McAllister
Street side of City Hall, comprising an additional
approximately 1,800 square feet.
1. Mr. Nelson reports that he does not have a
separate breakdown of the costs to construct the
basic space for the Child Care Center, which was
BOARD OF SUPERVISORS
BUDGET ANALYST
19
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
completed as part of the overall City Hall
renovation project. However, Mr. Nelson reports
that in the final plan there will be two separate
children's bathrooms and one adult bathroom as
well as two food preparation areas in the proposed
space, although the children will be required to
bring their own lunches and Marin Day School will
provide morning and afternoon snacks. Mr. Nelson
notes that the construction of this space has
already included one bathroom for children, one
bathroom for adults, three undercounter
refrigerators, one full-size refrigerator, one washer
and dryer and two dishwashers. Mr. Nelson notes
that the requested $318,838 would complete the
necessary renovations to make the space useable
for a Child Care Center.
2. As noted above, the City Hall Child Care Center
would have two exterior play areas, one for
toddlers, at a cost of $80,260, and one for infants,
at a cost of $78,090, for a total cost of $158,350. The
Budget Analyst questioned why the City Hall Child
Care Center is proposing to construct these two
exterior play areas, when over the past five years,
the City has spent over $600,000 of Open Space
Funds to construct two extensive play areas,
specifically geared toward young children in the
Civic Center Plaza, directly across the street from
City Hall. Ms. Karen Hong, of the Department of
Administrative Services responded that (1) the
Civic Center Plaza facilities are currently
overcrowded since other childcare facilities in the
Tenderloin use these play areas and 2) Marin Day
Schools would need a waiver of State licensing
requirements to be able to use these play areas.
Furthermore, Ms. Hong notes that Marin Day
Schools has agreed to allow neighborhood
Tenderloin childcare facilities to use the proposed
two new City Hall exterior play areas.
In addition, the exterior play areas are proposed to
have wrought iron fencing surrounding the area, at
a total cost of $34,688. An alternative chain link
fence, at a total cost of $16,955, or less than half
the cost of the wrought iron fence, was rejected
BOARD OF SUPERVISORS
BUDGET ANALYST
20
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
because according to Mr. Nelson, it was not
architecturally consistent with the rest of City
HalL and was determined to be less safe for the
children. The actual play equipment for the
children in the play areas is anticipated to cost
$25,864, including a playstructure for $8,752 and a
play maze for $7,427.
3. Furthermore, the budget details reviewed by the
Budget Analyst's Office reflected toy and children's
furniture costs that appear excessive. For example,
$190 for a set of five small trucks, $610 for a set of
nursery mini hollow blocks, $710 for a set of half
school unit blocks, $185 for Bouncy Birds, 32 small
chairs for the children for $2,036, or an average
cost of $64 per chair and $507 for aquariums. In
response, Ms. Hong reports that the childcare
facility furnishings will be consistent with the high
quality of the other furnishings in City- Hall, and
that the Department of Administrative Services
and Marin Day School agreed to the need to
purchase only high quality toys and equipment
that would last for a long time and not require
replacement in the near future.
4. The interior construction cost estimate of
$90,000 includes a contingency of approximately 20
percent. Ms. Sherri Williams of the City Architect's
Office reports that this 20 percent contingency will
be needed for additional Americans With Disability
Act improvements (ADA) and fire safety
renovations. Ms. Williams notes that this interior
work will actually be completed by the Bureau of
Building Repair (BBR) and a contractor, ISEC, that
specializes in interior woodwork and equipment,
who has been working on the City Hall
renovations. The Budget Analyst also notes that
the budget for the two exterior play areas includes
a contingency factor of an unquantified amount.
The Budget Analyst therefore questions why the
subject request includes an additional five percent
contingency of $15,183, on top of these two other
construction contingencies. The Budget Analyst
therefore recommends that this additional five
BOARD OF SUPERVISORS
BUDGET ANALYST
21
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
percent contingency be eliminated for a savings of
$15,183.
5. Mr. Nelson reports that the proposed Child Care
Center will be able to accommodate a total of 49
children, based on the following breakdown by
ages:
Infant & Toddlers (2 mos.- 30 mos.) 21
Young Preschool (30 mos. - 3 K yrs.) 12
Preschool (3 J4 yrs. - 5 Vi yrs.) 16
Total 49
Mr. Nelson notes that it is likely that all 49
available spots for children will not be filled
immediately. However, based on a total requested
cost of $318,838, and assuming that all 49 spots are
eventually filled, it results in an average capital
expenditure of $6,507 per child.
6. Mr. Nelson reports that initially the City did not
receive any responses to the City Hall Child Care
Center Request For Proposal (RFP), until the date
was extended and more requests were issued.
Ultimately, the City only received two responses to
their RFP, one from Florence Crittenden Services
and one from Marin Day Schools. Mr. Nelson notes
that Florence Crittenden Sen-ices specializes in at-
risk youth, and was not determined to have
significant experience with infant day care services.
Marin Day Schools was selected as the operator of
the proposed City Hall Child Care Center, based on
a review panel process consisting of representatives
from the Department of Children, Youth and Their
Families, the Department of Administrative
Services, Department of Human Services and the
Mayor's Office, according to Mr. Nelson.
7. Under a pending three-year contract between the
City and Marin Day Schools, which would extend
from July 1, 1999 through June 30, 2002, Marin
Day Schools would pay the City $1 per year for the
proposed space and the City would be responsible
for renovations of the facility of up to $350,000, and
for providing all utilities, janitorial and
BOARD OF SUPERVISORS
BUDGET ANALYST
22
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
maintenance services. Under this agreement,
Marin Daj r Schools would collect all of the revenues
and pay all of the operating expenses. Mr. Nelson
notes that the Department of Children, Youth and
Their Families will be entering into this three-year
operating agreement with Marin Day Schools, to be
effective July 1, 1999, which would not be subject
to the Board of Supervisors approval. However, Mr.
Nelson reports that a resolution authorizing the
City to enter into a lease with Marin Day Schools
for Marin to pay the City $1 per year is currenthy
being prepared and will be subject to the approval
of the Board of Supervisors.
8. As shown in Attachment 1, provided by Marin
Day Schools, the estimated operating costs for this
facility is $385,000 the first year of operation,
increasing to $422,000 by the third } r ear of
operation. Approximately 97 percent of the
operating costs, or $375,000 of the total $385,000
operating costs during the first year is anticipated
to be financed from tuition income. However, the
tuition income includes an annual $50,000 General
Fund subsidy (See Comment No. 10). The balance
of approximately three percent of the operating
costs will be financed from other revenues and
donations realized by Marin Day Schools.
9. Attachment 2, provided by Marin Day Schools
identifies the monthly tuition rates ranging from
$285 per child for two mornings for the preschool
children to $1,045 per child for five full days for the
infant/toddler program. However, since most of the
people using the facility are Likely to be full-time
City employees, it is likehy that five full days of
care would be needed for their children.
Given the need for moderate child care costs for
City employees, the Budget Analyst questions the
monthly costs for full-time care of between $810 for
preschool students to $1,045 for infant/toddlers.
Additionally, Marin Day Schools charges a $100
annual activity fee and a $50 student registration
fee. Mr. Nelson reports that the proposed tuition
BOARD OF SUPERVISORS
BUDGET ANALYST
23
Memo to Finance and Labor Committee
Maj ? 12, 1999 Finance and Labor Committee Meeting
rates are the same rates that Marin Day Schools
charges at its other facilities.
10. According to Mr. Nelson, beginning in FY 1999-
2000, the City, through the Department of
Administrative Services, will contribute an annual
General Fund subsidy of $50,000 to the proposed
Child Care Center to provide tuition scholarships
and subsidies for low-income families using the
City Hall Child Care Center. Mr. Nelson notes that
the Department budgeted $175,000 for six months
of tuition subsidies in FY 1998-99 for the City Hall
Child Care Center, but under the proposed plan,
this would be reduced to the currently projected
$50,000 annually. Mr. Nelson adds that the City's
$50,000 annual contribution is included as part of
the tuition income line item in Attachment 1.
11. Mr. Nelson reports that there is likely to be
more requests to place children in the City hall
Child Care Center than the 49 available slots.
Therefore, Ms. Hong notes that a priority system
has been developed by the City Hall Policy
Committee, which is comprised of representatives
from the Controller's Office, Mayor's Office,
Treasurer's Office, Department of Administrative
Services and the City Architect. Under this priority
system, first priority will be given to employees
who work in City Hall, including City employees
and non-City employees who work in the City Store
and cafes. Second priority will be given to City
employees who work in the Civic Center area, and
the third priority will be given to other City
employees. In addition, Mr. Nelson notes that of
the total 49 available childcare slots, five slots will
be set aside for children from the adjacent
Tenderloin neighborhood. However, in all cases,
Mr. Nelson reports that the actual selection of child
care applicants will be made by the Marin Day
Schools.
12. Although City Hall opened in early January of
1999, the City Hall Child Care Center is not
anticipated to open until September of 1999, or
eight months later. Mr. Nelson reports that this
BOARD OF SUPERVISORS
BUDGET ANALYST
24
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
delay occurred due to safety concerns, since all of
the construction work was not completed in City
Hall when it opened in January of 1999, and due to
the operational difficulty for Marin Day Schools to
begin a Child Care Center in mid-year, rather than
at the beginning of the regular school year.
13. In response to the Finance and Labor
Committee's request for a summary of childcare
rates at the Yerba Buena Childcare Center, Ms.
Fran Kipnis of the Department of Children, Youth
and Their Families reports that she will be able to
provide such information at the May 12, 1999
Finance and Labor Committee Meeting.
14. The Budget Analyst raises the following
concerns about the requested release of reserve: (1)
there were only two responders to the City's RFP to
provide childcare services in City Hall, and ordy
one of the responders, Marin Day Schools, had
extensive experience in pro\dding both
infant/toddler and preschool services, (2) the
facility has two food preparation areas, with a
refrigerator in each of the two food preparation
areas as well as two additional refrigerators in the
other two rooms, yet the children will be
responsible for bringing their own lunches to
school, and Marin Day will just be providing snacks
for the children, (3) two exterior play areas are
proposed, at a total cost of $158,350, although
directly across the street in the Civic Center Plaza,
the City recently constructed extensive play areas
for small children, at a cost of over $600,000 with
Open Space funds, (4) expensive furnishings,
equipment and toys are being selected for this
facility at a total cost of $81,169, (5) an additional
contingency of five percent is provided under this
subject request for all of the proposed expenditures,
at a cost of $15,183, which is on top of two other
contingencies previously allocated for the interior
and exterior construction projects, (6) there is a
need for moderate child care costs for City 7
employees. As noted above, the monthly costs for
full-time child care range between $810 to $1,045
per month per child, in addition to the annual
BOARD OF SUPERVISORS
BUDGET ANALYST
25
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
activity fee of $100 and an additional $50 student
registration fee.
Recommendation: At a minimum, reduce the request by $15,183 to
eliminate the additional five percent contingency,
as referenced in Comment Nos. 4 and 14 above.
Approval of the remaining request of $303,655 is a
policy matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
9£
obZj,
Attachment '.
^
ro
tf>
SAN FRANCISCO CFTY HALL CHILD CARE CENTER H( " Ir^ 4 ^ J
PPOPO.S=ri np=aA"nNG 8UQG=7S .A*j#r
PROPOSED OPERATING 3UDGE7S
4u^
i
INCOME
Tuition
Registration
Activity Fees
Donations
^
TOTAL INCOME
fitful
4\
1 J
J*
ft.OOOJ
335,000.00
YEAR TWO YEAR THREE YEAR FOUR
390,000.00
3,50000
2,50000
4.00O00
400,000.00
410,000.00
4.000.00
3,00000
5,000.00
422,000.00
430,000.00
4,000.00
3,000.00
5,000.00
442,000.00
EXPENSE
Salaries
Payroll Taxes
Health Insurance
Workers Comp.
Admin/Management
Building & Grounds
Equipment
Faculty Development
Faculty Incentives
Food
Instructional Supply
Insurance
Maintgnancs Supply
Office Supply
Patty Cash
Frinting & copying
Special Events
Telephone
TOTAL EXPENSE
,230.000.0? )
"23.050.00
S.50O00
3.000.00
47.5OO00
1.000.00
50O00
1,500.00
1,200.00
2.80O.00
5,000.00
3,600.00
2,500.00
1.200.00
1,000.00
1.200.00
1,900.00
600.00
3S5,00OD0
290,000.00
25,10000
5,300.00
3.100.00
50,000.00
1,000.00
50O00
1.50000
i.2oaoo
3,000,00
6,000.00
3,700.00
2.60000
1,200.00
1.00000
1 .200.00
2,00000
60000
40Q.00OD0
305,000.00
27,000.00
S.50O00
3,500.00
52,500.00
1,500.00
1. 000.00
1,500.00
1,200.00
3,000.00
6,500.00
3,800.00
2,700.00
1,500.00
1,00000
1,200.00
2.000.00
60O00
422.000.X
317,000.00
28.000.00
7,000.00
3,600.00
55,000.00
3,000.00
1,400.00
1,500.00
1.500.00
3.400.00
.7,000.00
4,000.00
3,000.00
1,500.00
1,00000
1,500.00
2000.00
600.00
442,000.00
27
Attachment 2
MARIN DAY SCHOOLS
SAN FRANCISCO CITY HALL CAMPUS
September 1998 through August 1999
.. Monthly Katn
icaolarsatps ana siidirxg scaie fees are available. Pleas;
a below.
SCHEDULES
PRESCHOOL
Morning
Afternoon
Full
INFANT/TODDLER
Morning
-Afternoon
Pull
HOURS
7:30-12:30
12:30-6:00
7:30-6:00
7:3 0-1230
12J3 0-6:00
7:30-6:00
DAYS PER WEEK
2 3 s
S225 S3gs £525
S225 S385 £525
S405 5575 5810
£335 S4S0 S58S
S335 S480 S685
S480 S705 Sic*5
YEARLY FEES
Transition and Preschool Oniy
Yearly Activity Fee si 00
Drop In Daycare Card s 60
Continuing Student Registration S 50
Covers Special Events
Drop b Chad Cart 10
E>ue in the Spring
PLEASE NOTE
"Marin Day Schools is commmed to serving and suooorting fiuofr En
u-Oung to work with families experiencing financial Difficulties We offer
anancal aid whenever possible Applications for scholarship assistance
through the school or business office and are awarded on a first come, fix
Q ?f "^ "" 8VaILlbie - P1&5: ~ ** "*«— ^ talk to us anvranr
or^y other marters. MDS 39 Drumm Street, San Francisco CA Will
We are always
scholarships and
tnay be obtained
St served basis as
, regarding these
(<15) 331-7766
AJ I tumons are cue on the first of eua month. Quality child care k castiv and w- realiv dn
^y on your prompt payments. Unless specific arrangements are made/a CO^Tw
^^^ returned oy the bank. We appreciate your cooperation in pavm/fe^Tl^
Please De sure to read the MDJLPirrnl Safiag for all poSss and prS^ °" ^
roT^L P.Eu:
28
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 9 - File 99-0880
Department:
Item:
Term of License:
Location and
Square Footage:
Amount:
Utilities, Janitorial
And Maintenance:
Right of Renewal:
Description:
Department of Administrative Services
Real Estate Department
Ordinance authorizing and approving a license
agreement between the City and County of San
Francisco, as Licensor, and Marin Day Schools, as
Licensee, for a child care facility located on the
ground floor level of City Hall and at an additional
outdoor facility area.
July 1, 1999 through June 30, 2002 (three years)
Approximately 3,500 square feet of ground floor
space in City Hall and adjacent outside play areas
$1 per year payable by Marin Day Schools to the
City
To be provided by the City
Director of Property may extend license, based on
extensions in the Operation Grant Agreement
The proposed ordinance would authorize and
approve a revocable license agreement between the
City and Marin Day Schools, extending from July
1, 1999 through June 30, 2002, a period of three
years. Under this license agreement, the City
would provide space in the basement of City Hall
and adjacent outside play areas for Marin Day
Schools to operate a Child Care Center. Marin Day
Schools will pay the City $1 per year to occupy the
City Hall space.
In accordance with the proposed license agreement,
the City may at its sole option, revoke the license at
any time, without cause and without any obligation
to pay any consideration to Marin Day Schools. The
license agreement also states that all of the
furniture, fixtures, office and child care equipment
that is purchased by the City is the property of the
BOARD OF SUPERVISORS
BUDGET ANALYST
29
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
City. Under the proposed license agreement, Marin
Day Schools would also indemnify the City against
all claims, damages and losses resulting from the
proposed City Hall Child Care Center.
Comments: 1. Mr. Steve Legnitto of the Real Estate
Department reports that the fair market rent for
the proposed space would be SI to $3 per square
foot per month, depending on whether the space
were used for storage, office or hearing room
purposes. If the approximately 3,500 square feet of
interior space that the Marin Day School will use
for the Child Care Center were instead used for
office, storage or hearing room purposes, the fair
market annual rental rate would be $42,000 to
$126,000. To explain the reason why Marin Day
Schools is only being charged $1 per year to occupy
and operate the Child Care Center in City Hall,
Mr. Legnitto reports that the City requested that
the Child Care Center be located in City Hall and
this Child Care Center will serve a public purpose.
Similarly, Mr. Legnitto notes that the City
requested that the U.S. Post Office be located in
City Hall, it serves a public purpose and the City
only charges the U.S. Postal Service $1 annual
rent. According to Mr. Ted Lakey of the City'
Attorney's Office, if the Board of Supervisors can
find and determine that a public purpose is being
served, then the City can charge less than the fair
market rate.
2. According to Mr. Legnitto, the proposed
ordinance would authorize a license agreement
rather than a lease agreement, because under a
license agreement, the legal remedies to terminate
the license can be expedited, if violations occur. Mr.
Legnitto reports that the proposed license
agreement between the City and Marin Day
Schools can be terminated if Marin Day Schools
violates the Operation Grant Agreement, under
which the City provides an annual $50,000 grant to
Marin Day Schools to subsidize the child care
operation costs. Mr. Lakey notes that the proposed
Operation Grant Agreement is a separate contract
between the City and Marin Day Schools, and, in
BOARD OF SUPERVISORS
BUDGET ANALYST
30
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
general, tbe Board of Supervisors does not approve
contracts of less than $1 million. Therefore, the
Operation Grant Agreement is not subject to
approval by the Board of Supervisors.
3. The proposed license agreement states that the
commencement date would be July 1, 1999.
However, Ms. Deborah Alvarez of the Department
of Children, Youth and Their Families reports that
the City Hall Child Care Center is not likely to
open until early September of 1999. Therefore, Mr.
Nelson and Mr. Legnitto report that the actual
commencement date of the proposed license
agreement will be amended to occur just prior to
the opening of the City Hall Child Care Center.
4. Ms. Nelson reports that the estimated annual
cost for the City to provide janitorial, maintenance
and utilities for the Child Care Center is
approximatehy $32,000 and the funds for such
expenses will be included in the Department of
Administrative Services budget for FY 1999-2000.
5. As noted above, the proposed license may be
extended beyond the initial three-3 r ear period by
the Director of Property, to coincide with
extensions to the Operation Grant Agreement. Mr.
Legnitto reports that an extension of the license
agreement or the Operation Grant Agreement
would not be subject to approval from the Board of
Supervisors.
Recommendation: Approval of the proposed ordinance is a policy
matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
31
Memo to the Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 10 • File 99-0881
Departments:
Item:
Department of Administrative Services
Department of Children, Youth and Their Families
Ordinance exempting the City Hall Child Care
Center outdoor play space and equipment from the
competitive bidding requirements of the San
Francisco Administrative Code.
Description:
In accordance with the City's Administrative Code
Section 6.05, when the cost for the construction or
repair of public buildings and the associated
materials, supplies and equipment exceeds
$50,000, competitive bidding for such contracts is
required. The design and construction, including
the equipment, for the outdoor play space for the
City Hall Child Care Center is estimated to cost
$158,350, and is therefore subject to this provision
of the City's Administrative Code.
In order to expedite the opening the City Hall Child
Care Center, the proposed ordinance would exempt
the design, construction and equipment for the
outdoor play space for the proposed City Hall Child
Care Center from such competitive bidding
requirements.
Under the proposed ordinance, the Department of
Administrative Services would be authorized to
negotiate and enter into all contracts necessary or
appropriate for the design, construction and
equipment for the City Hall Child Care Center
outdoor play space without the use of the City's
formal competitive bidding procedures. In addition,
the proposed ordinance states that the Department
of Administrative Services will comply with all
applicable requirements set forth in Chapters 12B,
12C and 12D of the City's Administrative Code,
which address nondiscrimination in various
contracts and the City's MBEAVBE/LBE
Ordinance.
Comments:
1. The City, through the Department of Children,
Youth and Their Families has selected Marin Day
BOARD OF SUPERVISORS
BUDGET ANALYST
32
Memo to the Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Schools to operate the Child Care Center in City
Hall. According to Ms. Deborah Alvarez, the
proposed City Hall Child Care Center cannot be
granted a license from the State of California to
operate a child care facility until an appropriate
outdoor play space at the site is available. Ms.
Alvarez currently projects that the exterior play
space as well as the entire City Hall Child Care
Center will open by early September of 1999.
2. According to Mr. Steve Nelson of the Department
of Administrative Services, Community
Playgrounds would be the selected contractor to
design, construct and equip the outdoor play spaces
for the Child Care Center. According to Mr. Nelson,
the reason that Community Playgrounds was the
selected sole source contractor is because this firm
(1) has specific expertise in designing and
constructing childcare playgrounds, (2) developed
the recent children's playgrounds in Civic Center
Plaza, and (3) is familiar with the City's
procedures.
3. As identified above, the design, construction and
equipment for the outdoor play space for the City
Hall Child Care Center is estimated to cost
$158,350 (See Item 8, File 99-0801 for the pending
request for release of reserved funds).
4. Mr. Nelson notes that although the interior
construction and improvements for the City Hall
Child Care Center will cost a total of $90,000, much
of the work will be provided by the City's Bureau of
Building Repair (BBR), such that less than S50.000
will be contracted out to private contractors.
Therefore, Mr. Nelson reports that in accordance
with Section 6.05 of the City's Administrative Code,
the Department is not required to and will not be
competitively bidding the contracts needed for the
interior construction and improvements.
Recommendation: Approval of the proposed ordinance is a policy
matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
33
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 11 - File 99-0803
Department: Recreation and Park Department (RPD)
Item: Resolution authorizing and approving a management
agreement by and between the City and County of San
Francisco and U.S. Parking, Inc., for U.S. Parking Inc. to
operate Kezar Parking Lot located at Stan3 r an and Frederick
Streets.
Location:
Purpose of
Management
Agreement:
No. of Sq. Ft.
Description:
Stanyan and Frederick Streets
To provide for the operation of a City-owned surface parking
lot with a capacity of 341 vehicles.
107,440 square feet
The proposed subject management agreement between the
Recreation and Park Department (RPD) and U.S. Parking,
Inc. would authorize U.S. Parking, Inc. to operate the Kezar
Parking Lot, a City-owned property, accommodating 341
vehicles at Stanyon and Frederick Streets.
The current lessee, City Parking Company, has been
operating the Kezar Parking Lot on a month-to-month basis
since their 5-year lease agreement with the Recreation and
Park Department expired on May 31, 1992. According to Mr.
Chris Mack of the Recreation and Park Department, based
on 12.5% of monthly revenues of up to $16,167 and 10.57% of
monthly revenues over $16,167, City Parking Company paid
the RPD approximately $60,000 annually in rent during
Fiscal Year 1997-1998 under the existing month-to-month
lease agreement. The budgeted annual rental payment to
the City for Fiscal year 1998-1999 is $60,000, according to
Mr. Mack.
This subject resolution would authorize a management
agreement, as opposed to a lease agreement. As noted above,
under the existing lease agreement, the City Parking paid
RPD rent in the form of a percentage of monthly gross
revenues. Under the proposed management agreement, all
parking revenues from the Kezar Parking Lot would be
deposited daily into an account controlled by the City and,
BOARD OF SUPERVISORS
BUDGET ANALYST
34
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Estimated Annual
Revenues:
from that account, RPD would pay U.S. Parking Inc. a fixed
monthly management fee of $17,021 for the operation of the
parking lot. Mr. Mack reports that, per the proposed
management agreement, U.S. Parking would also provide
approximately $55,000 in capital improvements to the lot
including an attendant shelter, state-of-the-art ticket
dispensing, card readers, and revenue collection/monitoring
equipment. Under this management agreement, the City
would keep all of the revenues instead of receiving a
percentage of gross revenues.
$240,000 ($20,000 per month) under existing rates.
$492,288 ($41,024 per month) under proposed rates.
(See Comment No. 2 below)
Increase in Annual
Revenues:
$180,000 under existing rates.
$432,288 under proposed rates, (see Comment No. 2 below)
Term of Agreement: Five years, commencing on the first day of the month
immediately following the Board of Supervisors approval of
the proposed lease. In addition, on and after the 30-month
anniversary of the effective date of the subject management
agreement, RPD would have the right to terminate the
subject agreement, with or without cause, with at least 180
days written notice.
Right of Renewal: None.
Insurance
Provision:
U.S. Parking, Inc. would be required to maintain Garage
Liability and Garage Keeper's Insurance with a limit of not
less than $1,000,000, in addition to Workers Compensation,
Comprehensive General Liability and Comprehensive
Automobile Insurance.
Comments:
1. On November 10, 1998, the Department of Real Estate
issued an Invitation for Bids (IFB) to operate the Kezar
Parking Lot and received eight bids on December 17, 1998.
The Attachment to this report, provided by the RPD, lists the
eight companies that responded to the IFB and the bid
submitted b} r each. The bid amounts represent the monthly
management fee payable by RPD to the parking operator. As
noted in the Attachment, US Parking, Inc. submitted the
lowest monthly management fee bid of $17,021.
BOARD OF SUPERVISORS
BUDGET ANALYST
35
Memo to Finance and Labor Committee
Ma}' 12, 1999 Finance and Labor Committee Meeting
2. According to Mr. Mack, tbe subject management
agreement would increase annual revenues from tbe Kezar
Parking Lot by $180,000 annually from tbe $60,000 in
revenue budgeted for FY 1997-98 to annual revenues of
$240,000 based on existing parking rates, an increase of 300
percent. This increase results simply because tbe RPD will
receive all parking revenues and pay a management fee for
operation of tbe parking lot instead of receiving a percentage
rent based on a lease agreement that began in 1987 and
expired in 1992.
However, the RPD, has also submitted a proposed ordinance
(File 99-0857, introduced May 3, 1999) that would
substantially increase parking rates. Such parking rates
have not been increased since 1991. If approved by the Board
of Supervisors, the increase in revenue would be
approximately $432,288 annually, or over 720 percent, from
the $60,000 in revenue budgeted for FY 1997-98 to annual
revenues of $492,288.
Mr. Mack explains that the revenues to RPD from the
proposed management agreement are estimated to be
$41,024 per month or $492,288 per year, if separate future
legislation is approved to increase the parking rates.
According to Mr. Mack, RPD will provide improvements to
the lot including re-surfacing, striping, and installation of
bike lockers in the first year of the subject management
agreement and that such improvements are estimated to cost
$25,000.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
36
*\
n *"
Exhibit A
KT7AP PAK K R1G LOT BID RESULTS
December 17, 1998
R&L C\ppCO\Ja.\
1. US Parian^ Inc.
FsqV€3
517,021.00
2. City Parking Co.
18.700.00
Yes
3. On-Line Parians
19.551.00
No
4. DanasPirfcine
19,710.61
Yes
5. Parian* Concern*. Inc.
22,498.00
No
6. 'Pacific Park Manaeemem
22,747.04
Yes
7. ABC Parfcin^THOR
23,888.00
Yes
8. Chu Funs and Daniel Seid
24.2S8.00
Yes
37
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 12 - File 98-2026
Department:
Item:
Amount:
Source of Funds:
Description:
Public Utilities Commission (PUC)
Resolution approving the issuance of up to $150,000,000
in aggregate principal amount outstanding at any one
time of Public Utilities Commission Commercial Paper
Notes (Water Series) pursuant to Chapter 84 of Part 1 of
the Municipal Code, in one or more series, for the purpose
of financing and refinancing certain capital improvements
related to the City's water system; approving the
maximum interest thereon; and approving related
matters.
Up to $150,000,000
Commercial Paper, to be repaid with San Francisco Water
Revenue Bonds (see Item 13, File 99-0784, of this report
to the Finance and Labor Committee)
In June of 1998, the Board of Supervisors approved an
ordinance (File 98-738) authorizing the procedures for the
issuance by the PUC of Commercial Paper and other
short-term indebtedness in anticipation of proceeds from
the issuance of previously authorized but unsold revenue
bonds.
This subject resolution would authorize the PUC to issue
up to $150,000,000 in Commercial Paper for the purpose
of financing and refinancing certain capital improvements
related to the City water system, to improve and expand
the City's storm water and drinking water systems, as
well as to pay for the costs of issuance and other related
costs.
Commercial paper is a short-term financing instrument
used by both corporations and municipal issuers. San
Francisco International Airport is the only City agency
that has issued Commercial Paper to date, as previously
approved by the Board of Supervisors in June of 1997
(File 170-97-05). Commercial Paper is issued on an as-
needed basis to meet short-term cash demands. In
contrast to the 30-year bonds that are generally issued to
finance the City's capital costs, Commercial Paper
BOARD OF SUPERVISORS
BUDGET ANALYST
38
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
maturities range from one to 270 days. According to Mr.
Phil Arnold of the PUC, over the past 10 years
Commercial Paper interest rates in California have
averaged over 2 percent less than long-term bond interest
rates. Commercial Paper can therefore be used as a
short-term, low-cost source of construction financing.
The subject Commercial Paper to be issued by the PUC
would be repaid with proceeds from the sale of the San
Francisco Water Revenue Bonds that would be authorized
under Item 13, File 99-0784, of this report to the Finance
and Labor Committee. In November of 1997, voters
approved Proposition A, authorizing the City to issue
$157,000,000 in Water System Reliability and Seismic
Safety Revenue Bonds for the purpose of providing funds
for acquiring and constructing reliability and seismic
safety improvements to the City's water system, and
Proposition B, authorizing the City to issue $147,000,000
in Safe Drinking Water Improvement Revenue Bonds for
the purpose of acquiring and constructing safe drinking
water improvements related to the City's water system.
The total authorized bond amount for the two issues is
$304,000,000.
Mr. Arnold states that the PUC expects to issue San
Francisco Water Revenue Bonds, in an amount not to
exceed $140,000,000, to repay the proposed Commercial
Paper, by August of 2000.
Attachment I, provided by the PUC. compares the
financing costs of San Francisco Water Revenue Bonds
with the issuance of up to $150,000,000 in Commercial
Paper to the financing costs of San Francisco Water
Revenue Bonds without the issuance of up to
$150,000,000 in Commercial Paper. As shown in
Attachment I. the issuance of the Commercial Paper
would result in a reduction in the amount of San
Francisco Water Revenue Bonds to be issued of
$1,405,000, from $139,195,000 to $137,790,000 and a
reduction in overall debt service because the interest
rates for Commercial Paper will be 3.0 percent compared
to an interest rate of 5.1 percent for the San Francisco
Water Revenue Bonds (see Comment 1).
BOARD OF SUPERVISORS
BUDGET ANALYST
39
Memo to Finance and Labor Committee
Ma}' 12, 1999 Finance and Labor Committee Meeting
A Letter of Credit from two banks, Landesbank
Girozentrale and the State Street Bank and Trust
Company, will provide security for the Commercial Paper.
Under the Letter of Credit issued by the banks to the
PUC, the banks will make principal and interest
payments when they become due for any Commercial
Paper that has been issued, and the PUC will reimburse
the banks from additional Commercial Paper proceeds.
As a result, the credit rating for the Commercial Paper
will be based on the short-term credit rating of the banks
issuing the Letter of Credit, rather than the PUC's credit
rating.
Approval of the subject resolution would also: 1) establish
a maximum rate of interest for the Commercial Paper and
for the Bank Notes of 12 percent annually, 2) approve
various documents related to the issuance, sale and
delivery of Commercial Paper and Bank Notes, and 3)
authorize the Director of the Mayor's Office of Public
Finance, the City Attorney, and all other appropriate
officers, employees, representatives and agents of the City
to take any necessary actions to provide for the issuance
of the Commercial Paper.
Comments: 1. Attachment II, provided by the PUC, contains a list of
the capital project budgets, totaling $126,100,000, to be
funded with San Francisco Water Revenue Bonds, which
will be requested in the PUC's FY 1999-2000 budget.
The following table, based on information provided by Mr.
Arnold, details the debt service requirements for the San
Francisco Water Revenue Bonds, based on estimated
interest rates of 5.1 percent on the San Francisco Water
Revenue Bonds and 3.0 percent on the Commercial Paper:
BOARD OF SUPERVISORS
BUDGET ANALYST
40
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
San Francisco Water Revenue Bonds
Debt Service Requirements
Without With
Commercial Commercial Debt Service
Paper Paper Savings
Principal $139,195,000 $137,790,000 $1,405,000
Interest
Payments $135.554.398 $134.186.145 $1.368.253
Total Debt
Service $274,749,398 $271,976,145 $2,773,253
Annual Debt
Service $9,158,313 $9,065,872 $92,442
As shown on the table above, over a 30-year term,
approximately $2,773,253 would be saved by issuing the
Commercial Paper ($92,442 each year for 30 years).
2. The proposed Commercial Paper would be sold on an
as-needed basis to provide sufficient cash to finance the
needed capital improvements prior to receipt of the
proceeds from the sale of the above-noted San Francisco
Water Revenue Bonds. Mr. Arnold reports that through
July 31, 1999, the PUC tentatively plans to sell
approximately $10,000,000 to $20,000,000 in Commercial
Paper. The term and the interest rate of such
Commercial Paper would be determined on the day of the
sale, and would vary based on the PUC's cash needs and
market conditions. Approval by the Board of Supervisors
would not be required for each sale of Commercial Paper
but, in accordance with Ordinance 98-738 previously
approved by the Board of Supervisors in June of 1998,
which authorized the procedures for the issuance of
Commercial Paper by the PUC, the Director of Public
Finance would approve each sale.
3. The PUC selected a team of underwriters, Lehman
Brothers/Charles A. Bell (Charles A. Bell is an MBE
firm), following an RFP selection process in May of 1998.
The PUC received six proposals, and selected Lehman
BOARD OF SUPERVISORS
BUDGET ANALYST
41
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Brothers after evaluating the proposals based on the
criteria specified in the RFP, including firm capability
and experience, assigned project staff, and cost. The PUC
selected two banks bidding together, Bayerische
Landesbank Girozentrale and the State Street Bank and
Trust Company, to offer Letters of Credit following a
competitive bid in December of 1999. The PUC received
three bids, and selected the bid with the lowest cost.
4. According to Mr. Arnold the PUC's Commercial Paper
program would not be backed bj 7 General Fund revenues
and will not create any exposure to the General Fund.
Mr. Dave Sanchez of the City Attorney's Office concurs
with Mr. Arnold.
5. The ordinance (File 98-738) outlining the procedures
for the PUC's issuance of Commercial Paper, previously
approved by the Board of Supervisors in June of 1998,
limits the PUC's authorization to issue Commercial Paper
to five years from the date of first issuance of Commercial
Paper. According to Mr. Arnold, the PUC's Letter of
Credit also has a five year term. As such, assuming no
extensions or contract modifications, the PUC would have
to sell the long term San Francisco Water Revenue Bonds
in order to pay back the Commercial Paper no later than
at the end of the five-year term. The PUC expects to sell
the long-term San Francisco Water Revenue Bonds by
August of 2000.
6. Since the Commercial Paper issuance is to be repaid
from San Francisco Water Revenue Bonds, this proposed
resolution should only be approved if Item 13, File 99-
0784 is also approved.
Recommendation: Approve the proposed resolution, pending approval of
Item 13, File 99-0784.
BOARD OF SUPERVISORS
BUDGET ANALYST
:2-IS5= 12:S2
P.U.C. PUHGSSZNG DEPT.
415 4£7 5ZZT
F .21/21
Aprii 30, 1999
To: James Edison
From: Phil Arnold
tojmptfon « s Interest rata on bonds @ 5J% po-year termV inro
bond prcceeos @ 5 %; iTCSres: „ cn ZxnmerSl pane^* **** *^ 9S Cn
Eased Ion current interest rates, Che sources and uses of the ~~
and hv.thout commercal pacer, to func the i999-?o ca. ™ ■-' ^ CSec bl
ror the water enterprise wouid 'be as follows:
ideal improvement prcgran
Sstlmafd 9ourr~: ^ i_i safi 9 f ; P y Dr ,„ a =„
(With Commercal Pace-;
Total Sources
Underwriter's Discount
Cost of Issuance
Insurance
Capitalized Interest (1 yr.)
Surety (paid at cosine)
Net Proceeds
Commercial pace- issuance ccstr
1 otal Construction Funds Available
2127,790,000
(564,520)
(350,000)
(1,253,579)
(6,525,096)
/17g.?r^
5125.202,792
5125,100,000
2^tt* SniTre< gnr I ^ nf = — rr^TM
(Without 'Commercal Pacer)
1 otal Sources
Underwriter's Discount
Cost of Issuance
Insurance
Capitalized Interest (2 yrs.)
Surety Bond
Net Proceeds
Interest on Proceecs
1 otal Construction F-jncs Avaiiacie
J -MRtcncs.wpd
S12S, 195,000
(974,365)
(250,000)
(1,404,525)
(12.551,25c)
S 122, 722 ,459
$126, 100,000
iUTPL P.9J
43
Attachment II
SAN FRANCISCO PUBLIC UTILITIES COMMISSION
1999-2000 "Water Enterprise Capital Projects
(Bond-funded)
BlBBggfflgn, A - Svstem T? -liarmnv P-oiccts
Bay Division Pipeline Improvements S 80 million
Prestressed concrete pipeline replacement 5.7 million
SCADA system 1 3.6 million
City reservoir improvements 9.5 million
Pump station improvements 5.6 million
City Distribution Division - system improvcrncnis 15 3 million
System reliability improvements 9.1 million
Total 1999-2000 Proposition A Projects S67 j million
EZQBgggjg n B • Water Quality Projects
Ketch Hetchy Water Treatment Project S12-5 million
Sunol Valley Water Treatment Plant 35.6 million
Harry Tracy Water Treatment Plant 5.0 million
Other water quaiity improvements 5.7 million
Total 1999-2000 Proposition 3 Projects S58.8 milli on
Total 1999-2000 Proposition A and B Projects S126.1 million
KMRbondl.wpd
TOTPL P. 01
44
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 13 - File 99-0784
Department:
Item:
Amount:
Source of Funds:
Description:
Public Utilities Commission (PUC)
Resolution approving tbe issuance of up to $140,000,000
aggregate principal amount of San Francisco Water
Revenue Bonds for tbe purpose of financing reliability and
seismic safety improvements and safe drinking water
improvements related to the City's water s} r stem.
Not to exceed 5140,000,000.
San Francisco Water Revenue Bonds
In November of 1997, voters approved Proposition A,
authorizing the City to issue $157,000,000 in Water
System Reliability and Seismic Safety Revenue Bonds for
the purpose of providing funds for acquiring and
constructing reliability and seismic safety improvements
to the City's water system, and Proposition B, authorizing
the City to issue $147,000,000 in Safe Drinking Water
Improvement Revenue Bonds for the purpose of acquiring
and constructing safe drinking water improvements
related to the City's water s\ T stem. The total authorized
bond amount for the two issues is $304,000,000.
The subject proposed resolution would authorize the
issuance of up to $140,000,000, out of the total voter-
authorized bond amount of $304,000,000, in San
Francisco Water Revenue Bonds for the purpose of
providing funds for: (1) acquiring and constructing
reliability and seismic safety improvements and safe
drinking water improvements to the water system; (2)
funding debt service reserves; and, (3) paying costs of
issuance, including redemption premiums, and other
related costs. Mr. Phil Arnold of the PUC, advises that
these improvements will provide the City's three water
treatment facilities with upgrades to improve water
qualtiy, and upgrade the distribution system, pumping
stations and treated water storage faculties for the City's
water system.
The precise amount of San Francisco Water Revenue
Bonds that the PUC ultimately will issue is contingent on
BOARD OF SUPERVISORS
BUDGET ANALYST
45
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
approval of a companion resolution (Item 12, File 98-
2026) in this report to the Finance and Labor Committee
related to the issuance of up to $150,000,000 in
Commercial Paper. Attachment I, provided by the PUC,
details the sources and uses of the proposed San
Francisco Water Revenue Bonds with and without the
issuance of the related Commercial Paper. As shown in
Attachment I, the issuance of the Commercial Paper
would result in a reduction in the amount of San
Francisco Water Revenue Bonds to be issued of
$1,405,000, from $139,195,000 to $137,790,000 and a
reduction in overall debt service because the interest
rates for Commercial Paper will be 3.0 percent compared
to an interest rate of 5.1 percent for the San Francisco
Water Revenue Bonds, as explained below.
The following table, based on information provided by Mr.
Arnold, details the debt service requirements for the San
Francisco Water Revenue Bonds, based on the estimated
interest rate of 5.1 percent on the San Francisco Water
Revenue Bonds and a 3.0 percent interest rate on the
Commercial Paper:
San Francisco Water Revenue Bonds
Debt Service Requirements
Without With
Commercial Commercial Debt Service
Paper Paper Savings
Principal $139,195,000 $137,790,000 $1,405,000
Interest
Payments 135.554.398 134.186.145 1.368.253
Total Debt
Service $274,749,398 $271,976,145 $2,773,253
Annual Debt
Sendee $9,158,313 $9,065,872 $92,442
As shown on the table above, over a 30-year term,
approximately $2,773,253 would be saved by issuing the
BOARD OF SUPERVISORS
BUDGET ANALYST
46
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Commercial Paper as proposed under Item 12, File 98-
2026 ($92,442 each year for 30 years).
Attachment II, provided by the PUC, provides a list of the
capital improvement projects to be financed with the net
proceeds from the San Francisco Water Revenue Bonds.
The capital projects total $126,100,000 and will be
requested in the PUC's FY 1999-2000 budget.
Comment:
1. The capital improvement expenditures in the amount
of $126,100,000, discussed above, will be included in the
PUC's proposed FY 1999-2000 budget, and would
therefore be subject to appropriation approval by the
Board of Supervisors.
2. The debt service on the San Francisco Water Revenue
Bonds would be repaid by Water Department revenues
and would not be a cost to the General Fund.
Recommendation:
Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
kl
Attachment I
April 30, 1999
To: James Edison
From: Phil Arnold
Assumptions: Interest rate on bonds @ 5.1% (30-year term); interest earnings on
bond proceeds @ 5%; interest rate on commercial paper @ 3%.
Based on current interest rates, the sources and uses of the proposed bonds, with
and without commercial paper, to fund the 1999-00 capital improvement program
for the water enterprise wouid be as follows:
Estimated Sour ce and Uses of Revenue Bonds
(With Commercial Paper)
Total Sources $137,790,000
Underwriter's Discount (964,530)
Cost of Issuance (350,000)
Insurance (1,358,879)
Capitalized Interest (1 yr.) (6,635,096)
Surety (paid at dosing) (178.702)
Net Proceeds $128,302,793
Commercial paper issuance costs (2.202. 793^
Total Construction Funds Available $126,100,000
Estimated Sour ces and Uses of Revenue Bonds
(Without Commercial Paper)
Total Sources $139,195,000
Underwriter's Discount (974,365)
Cost of Issuance (350,000)
Insurance (1,404,628)
Capitalized Interest (2 yrs.) (12,561,258)
Surety Bond „ (181.280^
Net Proceeds $123,723,469
Interest on Proceeds 2.276.531
Total Construction Funds Available $126,100,000
HMRboncs.wpd
TOTAL =.ai
48
Attachment II
SAN FRANCISCO PUBLIC inTUITES COMMISSION
1999-2000 Water Enterprise Capital Projects
(Bond-funded)
Proposition A - System Reliability Projects
Bay Division Pipeline Improvements
Prestressed concrete pipeline replacement
SCADA system
City reservoir improvements
Pump station improvements
City Distribution Division - system improvements
System reliability improvements
Total 1999-2000 Proposition A Projects
Propositio n B • Water Quality Projects
Hetch Hetchy Waier Treatment Project
Sunol Valley Water Treatment Plant
Harry Tracy Water Treatment Plant
Other water quality improvements
Total 1999-2000 Proposition B Projects
Total 1999-2000 Proposition A and B Projects
$ 8.5 million
5.7 million
13.6 million
9.5 million
5.6 million
15.3 million
9.1 million
S673 million
S12.5 million
35.6 million
5.0 million
5.7 million
S58.8 million
S126.1 million
HMRbondl.wpd
TOTfiL P. 01
49
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 14 - File 99-0045
Department:
Item:
Description:
Retirement Board
Ordinance amending Section 16.29-5 and adding
Section 16.61-4 of the San Francisco
Administrative Code concerning pre-tax treatment
of buy backs of employee service time for the years
the employee worked, but was precluded or not
fully included in the City's Retirement System.
The proposed ordinance would amend the City's
Administrative Code to allow City employees who
meet specific requirements to buy back service from
the Employees Retirement System (ERS) on a pre-
tax basis. A City employee would want to buy back
service from the Retirement System because it
would allow an employee to receive pension credits
for all or a portion of their prior years of
employment, that the employee was not fully
included as part of the City's Retirement System.
Under the proposed ordinance, the pre-tax basis
would include both Federal and State Income
Taxes. As a result, the proposed ordinance would
provide a significant benefit for emploj r ees by not
having to pay Federal or State Income Taxes prior
to their retirement on the amount paid by the
employees to the ERS for the Employees
Retirement System contribution for the buyback
service purchased by the employees.
The proposed ordinance was drafted in response to
a letter received by the City's Retirement System
from the Federal Internal Revenue Service (IRS) in
December of 1998. Ms. Clare Murphy of the
Employee's Retirement System reports that the
Employee's Retirement System petitioned the IRS
for such a letter ruling in July of 1997 because
previous IRS rulings on pre-tax buybacks did not
address several of the specific buyback features of
the Employee's Retirement System plan. Ms.
Murphy notes that pre-tax buybacks for payroll
deductions were authorized by the IRS through
what are known as Private Letter Rulings for the
first public retirement plans in 1995. Such pre-tax
BOARD OF SUPERVISORS
BUDGET ANALYST
50
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
buybacks were confirmed in 1997 Internal Revenue
Tax law for all retirement plans.
The proposed ordinance provides that in order to
qualify for the proposed buy backs on a pre-tax
basis, persons must be employees of the City and
County of San Francisco, the San Francisco Unified
School District or the San Francisco Community
College District. According to Ms. Murphy, the
City's pension plans currently extend to include
employees from both the Unified School District
and the Community College District. Ms. Murphy
reports that approximately 27.000 San Francisco
Unified School District, San Francisco Community
College District and San Francisco City and County
current employees are covered by the Employee's
Retirement System plans.
In accordance with the proposed ordinance, only
payroll deductions that may be required to be paid
into the Retirement System for (1) redeposits, (2)
shortages and (3) prior sen-ice, including but not
limited to temporary service, public service,
military service and representative service, which
is defined as the time during which an employee
leaves the City's employment to become a union
representative, would be eligible for the proposed
deferred income tax program. Ms. Murphy explains
that redeposits would be for those employees that
return to work for the City and the school districts
after monies were withdrawn from the City's
Retirement System's plan because an employee
initially left the City and school district
employment. In addition, Ms. Murphy reports that
shortages are a result of a period of time from 1959
through 1998, when the City did not offer full
Social Security benefits and allowed employees to
select a level of employee contribution to the
Retirement System up to the 7.5 percent or 8
percent maximum level. The shortage pertains to
those employees who did not select the maximum
level. Prior service, according to Ms. Murphy, is
defined as that period of time before an employee
became a permanent City employee, and would
include the period of time during which an
BOARD OF SUPERVISORS
BUDGET ANALYST
51
Memo to Finance and Labor Committee
Ma3 r 12, 1999 Finance and Labor Committee Meeting
employee was (1) a temporary employee, (2)
provided public service to another public entity,
such as the State of California, other local
California jurisdiction or Federal, non-military
department, (3) was in the military service or (4) in
representative service. Ms. Murphy further notes
that, in accordance with IRS regulations, the
proposed pre-tax provisions are not available to
employees who wish to buyback their previous
service through direct lump sum payments by
check, and would only be available through
automatic payroll deductions.
The proposed ordinance states that the Retirement
Board has the power to establish rules and
procedures necessary to collect the employee's
contributions for the prior service when the
employee worked under the specified conditions
listed above. According to Ms. Murphy, on March 9,
1999 the Retirement Board adopted Pretax
Buyback Policies and Procedures, which conform
with the City's Charter and Administrative Code
and the IRS Private Letter Ruling.
In conformance with the IRS ruling, the proposed
ordinance states that if an employee agrees to buy
back their service, that employee must sign an
irrevocable pa3rroll authorization form and that
employees may not terminate such irrevocable
payroll authorization before completion of the
payments or termination of employment, through
resignation, retirement or death. Ms. Murphy notes
that the employee must agree to sign an
irrevocable and legally binding payroll
authorization agreement, which cannot be changed
regardless of personal or financial hardship.
Comments: 1. According to Ms. Alice Villagomez, the
Memorandum of Understandings (MOUs) with the
Service Employees International Union (SEIU)
Locals 250, 535, 790 and 790 H-l, the Municipal
Attorney's Association and the Municipal
Executives' Association contain provisions which
state that the Retirement System will attempt to
obtain IRS approval to authorize the pre-tax
BOARD OF SUPERVISORS
BUDGET ANALYST
52
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
buyback of pension credits. In addition, the
Municipal Attorney's Association (MAA) MOU
states that the City shall promptly notify MAA
when the IRS approval is secured and meet with
MAA to discuss the procedure for MAA members to
accomplish such pre-tax buyback of pension credits.
Ms. Murphy notes that provisions of the proposed
ordinance would not become part of employee
MOUs.
2. Ms. Murphy reports that there are 3,856
employees that are currently buying back their
service time on an after -tax basis. This means that
for these 3,856 employees. Federal and State
income taxes are deducted from their paychecks,
prior to making their payments to the Employees
Retirement System in connection with buying back
their retirement service. If the proposed ordinance
is approved, it is anticipated that all of these 3,856
employees would immediately take advantage of
the proposed change prospectively to buy back their
service on a pre-tax basis, such that their payments
to the Employee's Retirement System would be
made before Federal and State Income Taxes are
deducted from their paychecks. Such a change will
result in an immediate savings to these employees
of their Federal and State Income Taxes.
3. In addition, as shown in the Attachment. Ms.
Murphy reports that an additional 22,936
"opportunities" exist for existing City and School
District employees to buy back prior service time,
redeposits or shortages. According to Ms. Murphy,
the Employees Retirement System is defining an
opportunity as a specific purchase of sen-ice or
repayment situation. The Attachment reflects that
each of these opportunities range in cost to the
employee from a minimum of S100 to a maximum
of $151,814.
Ms. Murphy notes that the Retirement System is
currently attempting to identify the number of
employees that would be effected by these 22.936
opportunities, since an employee may have more
than one opportunity (i.e., one employee could have
BOARD OF SUPERVISORS
BUDGET ANALYST
53
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
a shortage opportunity and a prior service
opportunity)- According to Ms. Murphy, she cannot
currently estimate how many of these employees
may wish to take advantage of the proposed change
to buy back their previous service time on a pre-tax
basis. The total outstanding cost of these buybacks,
to these City and School District employees, is
approximately $240 million.
4. Ms. Murphy notes that depending on the
individual employee's Federal and State Income
Tax brackets, under the proposed ordinance the
amount saved by each employee in Federal and
State Income Taxes would offset between 20
percent to approximately 39 percent of the
employees' costs of purchasing back the Retirement
System's service time. Ms. Murphy notes that the
proposed plan would not eliminate, but would
rather defer a portion of the taxes that would need
to be paid, since when such employees retire, they
would ultimately have to pay some Federal and
State Income Taxes on the amounts contributed to
the Retirement System for their buybacks.
However, since most retired individuals may be
receiving less income when they are retired than
when they are employed, many of these employees
will be taxed at a lower income tax rate when
retired, and will thus be paying less income taxes
than would otherwise occur.
5. Ms. Murphy estimates that in the FY 1999-2000
budget, the Retirement System will be requesting
approximately $107,000 of Temporary Salary funds
and $70,000 of additional funds for postage,
reproduction, information services and legal
support, for a total FY 1999-2000 cost of $177,000
to implement this proposed ordinance. Ms. Murphy
notes that although it is difficult to estimate future
year costs, it is anticipated that the need for
Temporary Salary and postage funds will continue
at approximately the same level in future years, or
approximately $115,000 annually. According to Ms.
Murphy, such costs would be paid out of the
administrative expenses of the Employees Pension
Trust which is financed from employer retirement
BOARD OF SUPERVISORS
BUDGET ANALYST
54
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
contributions. However, Ms. Murphy notes that the
City and the School Districts are not currently
required to make employer contributions to the
Employees Pension Trust Fund because the Fund
is fully funded. According to Ms. Murphy, the
Employees Pension Trust Fund has been fully
funded since 1995 and is projected to be fully
funded for approximately the next 15 years.
6. Ms. Murphy reports that the Employees
Retirement System is recommending that the City
offer this additional benefit for employees because
(1) currently pre-tax payroll deduction options are a
prevailing feature of most of the 40 major
California public retirement systems, (2) precluding
employees from participating in the Employees
Retirement System was the direct result of the
City's employment practices between 1970 and
1995 of not employing permanent staff that created
a large number of long-term temporary employees
who now have prior service opportunities, (3) it
would provide significant Federal and State Income
Tax savings for City and School District employees
and (4) this employee benefit can be authorized at
no immediate cost to the City, since it is the
Employees Trust Fund which would pay all
administrative expenses, and the Employees Trust
Fund is fully funded for approximately the next 15
years.
Recommendation: Approval of the proposed ordinance is a policy
matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
55
MPY-0S-1999 13: 2?
S.F. RETIREMENT SYSTEM
415 554 1523 P.e2/B2
Attachment
Buyback Opportunity Statistics as of 2-24-99
Type
# in progress
# Not yet
purchased
Minimum S J Maximum
Cost 1 SCost
To Be
Researched
1
|
Prior Service
1437
12017
$ 100.00 | S 151,814.00
1
Approx.
3000
Redeposit 1 109
1607
S 100.00 1 S 88.669.00
1
I
Shortage 1 2310 | 9312 I S 100.00 I $ 117,243.00
1 1 1
Total 1 3856 I 22936 j
Range of Buyback Costs as of 2-24-99
Cost
Prior Service
Redeposit
Shortage
1
to S999
3432
557
1563
S1000to4999
6074
578
1332
S 5000 to 9999
1459
124
814
$ 10000 to 14999
509
80
812
$ 15000 to 19999
225
51
782
S 20000 to 24999
112
36
746
$ 25000 to 39999
54
56
671
S 30000 to 34999
44
25
582
S 35000 to 39999
27
16
451
S 40000 to 44999
11
15
383
S 45000 to 49999
16
23
292
S 50000 to 54999
13
16
204
$ 55000 to 59999
14
9
166
S 60000 to 64999
10
1
145
S 65K &. more
17
20
339
TOTALS:
12017
1607
9312
Total outstanding buybacks cost 5240,000,000
TOTAL P. 82
56
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 15 - File 99-0737
Department:
Item:
Description:
Art Commission
Ordinance amending Article XIII, Chapter 10, Part
1 of the San Francisco Municipal Code
(Administrative Code) by adding Section 10.117-
123 thereto, establishing the Street Artists Fund as
a Special Fund for the purpose of receiving all
funds received by the San Francisco Arts
Commission Street Artists Program, pursuant to
Article 24 of the San Francisco Police Code, and
providing for interest accumulation therein.
An initiative ordinance (Proposition L) was
approved on November 4, 1975 to allow the Art
Commission to establish licensing authority and
screening procedures and to collect fees for the
Street Artists Program. In response, Mr. John
Madden of the Controller's Office reports that the
Controller's Office administratively established a
separate special fund for the Street Artists
Program, such that all revenues collected from the
Street Artists Program are currently deposited in
this special fund and all expenditures related to the
Street Artists Program, subject to appropriation
approval of the Board of Supervisors, are made
from this special fund. Mr. Howard Lazar of the
Arts Commission reports that the Street Artists
Program is self-supporting through its fees and the
Street Artists Program currently receives no
monies from the General Fund.
The proposed ordinance would formally establish a
Special Fund designated as the Street Artists
Fund, with the same requirements and restrictions
as are currently in place. In addition, the proposed
ordinance would credit accrued interest that
accumulates in this Fund, if the Fund balance is in
excess of $50,000 at the close of each business day,
back to the Special Street Artists Fund. Currently,
all interest earnings from the Street Artists Fund
are credited to the City's General Fund.
BOARD OF SUPERVISORS
BUDGET ANALYST
57
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
The proposed ordinance also states that all
donations of money and other gifts (including
grants, bequests, etc.) which may be offered to the
Art Commission for the Street Artists Program
purposes would be hereby accepted for such
purposes and would be deposited in the Street
Artists Special Fund. Currently, the Art
Commission must receive approval from the Board
of Supervisors to accept such donations of money,
grants and other gifts. The proposed provision
would override the requirement that the Art
Commission must seek such approval from the
Board of Supervisors to accept such gifts.
Comments:
Recommendation:
1. Street Artists license fees are currently $87.50
per quarter or $350 annually. In addition, the
Street Artist application fee is currently $20. Mr.
Lazar reports that the Art Commission last
increased these Street Artist fees in 1991.
According to Mr. Lazar, the Street Artists Program
annually generates approximately $140,000 to
$150,000 in revenues.
2. Mr. Madden estimates that, if the proposed
legislation is approved, the Street Artists Program
Fund would receive an additional $3,000 to $5,000
of revenue annually from the interest earnings on
the account. Conversely, the City's General Fund
would annually lose approximately $3,000 to
$5,000 of interest earnings from this account.
Approval of the proposed ordinance is a policy
matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 16 - File No. 99-0806
Department:
Item:
Location:
Purpose of Lease:
Lessor:
Lessee:
San Francisco Redevelopment Agency (SFRA)
Resolution authorizing a 50-year lease of land owned by
the San Francisco Redevelopment Agency to GGA 1820
Post, Limited Partnership (L.P.)
1820 Post Street between Filmore and Webster Streets.
Under the proposed lease, 2.45 acres of SFRA-owned land
located at 1820 Post Street would be leased to GGA 1820
Post Street, L.P., a non-profit organization, for the
purposes of preserving the 72-unit housing development
at 1820 Post Street with rent levels affordable to low
income persons.
SFRA
GGA 1820 Post, L.P.
Annual Rental Rate: - See Comment No. 4.
Term of Lease:
Right of Renewal:
Description:
50 years, commencing upon the
proposed lease.
effective date of the
GGA 1820 Post, L.P. would have the option to extend the
term for one additional period of 49 years.
According to Mr. Sean Spear of the SFRA, the Golden
Gate Apartments (the "Apartments") is a 72-unit housing
development located at 1820 Post Street. The
Apartments, together with 2.45 acres of land at 1820 Post
Street, are currently owned by Golden Gate Apartments,
L.P., a private firm. Mr. Spear advises that the Federal
Department of Housing and Urban Development (HUD)
currently subsidizes a portion of the existing mortgage on
the Apartments in order for Golden Gate Apartments,
L.P. to offer all 72 units at below market rental rates
which are affordable to low income persons. HLTD also
subsidizes portions of already below market rents for 24
of the 72 housing units under its Section 8 Program,
according to Mr. Spear. The Attachment, provided by the
BOARD OF SUPERVISORS
BUDGET ANALYST
59
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
SFRA, contains a list of the fair market rental rates for
each of the 72 housing units and their associated below
market rents after application of the HUD rental
subsidies.
In a letter dated March 5, 1998, Golden Gate Apartments,
L.P. notified the Mayor's Office of Housing, in accordance
with the City's Preservation Ordinance, that it intended
to prepay the existing mortgage on the Apartments, opt-
out of the above-noted HUD rent subsidy programs, and
convert the Apartments from affordable housing to
market rate housing. The City's Preservation Ordinance
requires that the City be given 18 months notice before
Golden Gate Apartments, L.P. could convert the
Apartments to market rate housing, in order for the City,
or its designated agent, to make an offer to purchase the
Apartments and preserve them with rent levels which are
affordable to low income persons. After a series of
negotiations between SFRA and Golden Gate
Apartments, L.P., Golden Gate Apartments. L.P. agreed
to sell (a) the 72-unit housing development to GGA 1820
Post Street, L.P. at a price of $5,119,333 and (b) the land
at 1820 Post Street, consisting of 2.45 acres, to the SFRA
at a price of $1,653,167. SFRA would then lease the land
to GGA 1820 Post, L.P.
Comments: 1. Because the SFRA intends to purchase the land at
1820 Post Street with Tax Increment Funds in SFRA's FY
1998-99 budget. Section 33433 of the California Health
and Safety Code requires the Board of Supervisors to
approve the lease of this property, which is the subject of
this proposed legislation.
2. The proposed lease contains the following provision
that requires GGA 1820 Post Street. L.P. to preserve the
Apartments with rent levels that are affordable to low-
income persons: "Following the Agreement Date at least
51 of the 72 residential units shall be occupied exclusively
by households with incomes at or below 60% the Area
Median Income." The proposed lease also states that "The
Developer [GGA 1820 Post Street, L.P.] shall accept
Project-Based Section 8 assistance from HUD for as long
as it is offered by HUD. In the event HUD no longer
provides Section 8 assistance, rents charged to households
BOARD OF SUPERVISORS
BUDGET ANALYST
60
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
with incomes above, at or below 60% of Area Median
Income shall not exceed 30% of the greater of (a) 60% of
Area Median Income or (b) the household's actual
3. Mr. Spear advises that the SFRA intends to purchase
the 2.45 acres of land at 1820 Post Street from Golden
Gate Apartments, L.P. at the fair market value of
$1,653,167, as determined by James Liska and
Associates, a private appraiser retained by the SFEA.
Mr. Larry Ritter of the Department of Real Estate (DRE)
states that the SFRA may hire private appraisers to
determine property values without review by the DRE.
This purchase would be made on the effective date of the
proposed lease. According to Mr. Spear, GGA 1820 Post
Street, L.P. intends to purchase the 72-unit housing
development at 1820 Post Street from Golden Gate
Apartments, L.P. on the effective date of the proposed
lease.
4. As of the writing of this report, the SFRA had not
provided the Budget Analyst with sufficient information
regarding the annual rental rate payable by GGA 1820
Post Street, L.P. to the SFRA. Mr. Spear advises that the
SFRA will present such information at the Finance and
Labor Committee on May 12, 1999. Because sufficient
information regarding the annual rental rate payable by
GGA 1820 Post Street, L.P. to the SFRA could not be
provided to the Budget Analyst prior to the issuance of
this report, the Budget Analyst considers approval of this
resolution to be a policy matter for the Board of
Supervisors.
Recommendations: In accordance with Comment No. 4, the proposed
resolution is a policy matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
61
Attachment 1: Rent Schedule
Total
Market Area
Actual
Unit
Number of
Rent for
Amount of
Size
Units by
Comparable
Rent Paid by
Jype
Unit
the Tenants
Obr
5
$300
5176-5602
lbr
14
51.000
568-5676
2br
26-
51.200
548-5301
3br
17
51.500
596-5393
4br
10
51.725
5^11-5986
TOTALS
72
--
--
Attachment
*Note thai one 2br unit is occupied by the Property Manager and will not receive a
subsidy (no rent is collected for this unit).
62
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Items 17 and 18 - File 99-0443 and File 99-0444
Department:
Item:
Description:
Department of the Environment (DOE)
Public Utilities Commission (PUC)
Ordinance amending Part I of the Municipal Code
(Administrative Code)
File 99-0443
The proposed ordinance would add a new chapter,
Chapter 82, Sections 82.1 to 82.7 to the City's Municipal
Code (Administrative Code) which establishes resource
efficiency requirements, including low-flow toilets and
showerheads, efficient light fixtures, indoor air quality
measures, recyclable storage and construction and
demolition debris management, for City-owned facilities
and faculties leased by the City.
The proposed ordinance would assist the City in fulfilling
Statewide goals, including the reduction of the amount of
solid waste disposed in landfills, promoting more efficient
City buildings that consume less electricity, water and
other resources and the reduction of the waste materials
generated in the demolition and construction of City-
owned buildings. All of these goals would assist the city
in meeting some of the objectives of the City's
Sustainability Plan. The City's Sustainability Plan was
adopted by the Board of Supervisors in July of 1997, and
lays out long-term goals for the City in the areas of
environmental conservation, community development and
economic growth.
The requirements imposed under the proposed ordinance,
detailed below, would apply to City-owned buildings
occupied by City Departments, buildings and space within
buildings leased by a City department from a private
lessor, but only where the City is responsible for utilities,
and City-owned buildings with private tenants under new
leases (leases executed 90 days or more after the effective
date of the ordinance). The requirements imposed under
the proposed ordinance would also apply to those City
construction projects with a total project cost of $90,000 or
more that also require a building permit.
BOARD OF SUPERVISORS
BUDGET ANALYST
63
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
The following is a summary of the requirements under the
proposed ordinance:
Water Conservation
Presently, under a 1994 PUC mandate, all showerheads
in City-owned buildings must not use more than 2.5
gallons of water per minute; all faucets must have
aerators (except hospitals); and all toilets must not use
more than 3.5 gallons of water per minute. According to
Ms. Kim Knox of the PUC. all non-City buildings were
required by the PUC to be retrofitted to meet the same
regulations by March 1, 1999 in order to get a 33 percent
lower rate on their water bill.
Under the proposed ordinance. City departments must (a)
at the time of major remodeling, when a water drainage
system is substantially altered, modified or renovated or
(b) by June 30, 2005, replace all toilets with low-flow
toilets (using no more than 1.6 gallons of water per flush)
and showerheads (using no more than 1.5 gallons of water
per minute). The PUC would be required to award
outside contracts for the purchase and installation of such
toilets and showerheads, and establish a procedure with
the Department of Public Works (DPW) for installation.
Attachment I, provided by Ms. Kimberly M. Knox of the
PUC, details the estimated cost savings over the next 15
years of installing the toilets required under the
ordinance in City-owned buildings and leased building
where the City pays for water consumption, and also
details the cost savings that could be realized at fire
stations and public swimming pools in the City by
installing water-efficient shower heads. As shown on
Attachment I, the City would save approximately
$415,682, net of costs, over the next 15 years of the
program by installing water-efficient toilets m City-owned
buildings, and would also save approximately $101,111,
net of costs, over the next 15 years of the program by
installing water-efficient toilets in property leased by the
City where the City pays for water consumption.
Therefore, the City could save a total of $516,793 over the
next 15 years by installing water-efficient toilets.
Attachment I also details the estimated cost savings of
installing water-efficient shower heads in City fire
BOARD OF SUPERVISORS
BUDGET ANALYST
64
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
stations and public pools, a total of $87,757 over tbe next
15 years. According to Ms. Knox, the net savings over the
next 15 years would be $80,407, after subtracting the cost
of installing 490 low-flow shower heads ($7,350, at a cost
of $15 each).
Energy Conservation
According to Ms. Danielle Dowers of the PUC Bureau of
Energy Conservation, City departments are presently
encouraged by the PUC to be in compliance with the
provisions of the State's Title 24 regulations, which
prescribe requirements related to energy conservation
such as energy-efficient heating, ventilation and air
conditioning (HVAC) systems and fighting systems. The
City does not impose a separate energy conservation
requirement. Neither the City nor the State conducts
inspections to determine Title 24 compliance
Under the proposed ordinance, City departments would
be required to use certain types of energy efficient fight
fixtures and exit signs, as specified by the ordinance or
State law, whichever is more stringent. For example,
City departments would be required to use light-emitting
diode-type (LED) signs, which consume less electricity,
when installing or replacing exit signs.
Attachment II, provided by Ms. Dowers of the PUC,
details the cost savings for installing LED exit signs,
improved fluorescent fighting and outdoor fighting
controls. As shown in Attachment II, the improved
fluorescent fighting would result over the next 15 years in
a total cost of $150,000, a total savings of $1,014,880 and
a net savings of $864,880 to the City. Aggregate numbers
are not available for the LED lighting and outdoor
fighting controls, but as shown in Attachment II, each
installation would result in a net savings to the City over
the next 15 j'ears.
Air Quality
Within 90 days of the effective date of this proposed
ordinance amendment, DOE would be required to assist
City departments in developing indoor air quality
maintenance plans. For example, DOE wold provide
guidelines on procedures for inspecting and maintaining
BOARD OF SUPERVISORS
BUDGET ANALYST
65
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
HVAC systems. According to Ms. Francesca Vietor of
DOE, there would be no additional costs or savings to the
City for this measure.
Fluorescent Lamp Recycling
City departments would be required to recycle all
discarded fluorescent lamps. According to Ms. Barbara
Bernardini of the Solid Waste Management Program, this
requirement would result in a net additional cost of
approximately $2,000 to the City each year, or
approximately $30,000 over the next 15 years.
Storage of Recvclables
City departments would be required to secure space for
recycling areas equal to the space set aside for storage of
refuse. According to Ms. Bernardini, this requirement
would not result in any net additional costs or savings to
the City
Construction and Demolition Debris
Presently, there are no City requirements related to the
disposal of construction and demolition debris, according
to Ms. Bernardini.
The proposed ordinance would require that all City
construction projects, with total projected costs of $90,000
or more at City-owned facilities and at space leased by the
City under new or existing leases, minimize, reuse and
recycle construction and demolition debris. The proposed
mandates include requiring the construction contractor to
develop and implement programs for on-site or off-site
recycling of materials such as asphalt, concrete, rocks and
sand. Additionally, the proposed ordinance would allow
the Director of DOE to grant exemptions to any
requirement that creates an unreasonable burden on a
project or department. According to Ms. Bernardini, this
requirement would not result in any net additional cost to
the City.
File 99-0444
The proposed ordinance, amending Part I of the
Municipal Code (Administrative Code) by adding Section
82.8 to Chapter 82, would create a pilot project to
demonstrate innovative construction techniques, such as
BOARD OF SUPERVISORS
BUDGET ANALYST
66
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
passive solar heating, building design that takes
advantage of sunlight for office illumination, natural
ventilation systems, building materials and other
resource-efficient methods in the construction of selected
City-owned facilities and faculties leased by the City.
The proposed ordinance would create a task force of
representatives from the following departments to select
pilot projects:
• Department of the Environment
• Department of Pubhc Works
Bureau of Architecture
Bureau of Construction Management
• Pubhc Utilities Commission
Customer Service Bureau
Bureau of Energy Conservation
• Department of Administrative Services
Solid Waste Management Program
• Department of Building Inspection
Within 90 days of the effective date of the proposed
ordinance, the City departments listed in Attachment III
would be required to identify at least one project currently
planned which could be selected by the task force as a
pilot project. According to Ms. Vietor, it is expected that
one to three projects would be selected for FY 1999-2000
and a total of five to seven projects for FY 2000-2001.
The proposed ordinance requires revenue-generating City
departments to fund pilot projects from their own revenue
and General Fund supported departments to submit
requests for funding from the General Fund to the Board
of Supervisors. DOE would attempt to identify other
pubhc and private sector funding for the remaining pilot
projects.
The proposed ordinance requires that, for any unfunded
pilot projects for FY 2000-2001, the Bureau of
Architecture would submit funding requests, coupled with
cost-benefit projections, to the City's Capital
Improvement Advisory Committee by January 31, 2000.
Lastly, the Bureau of Architecture would be required to
submit to the Board of Supervisors, within three years of
BOARD OF SUPERVISORS
BUDGET ANALYST
67
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
the effective date of the proposed ordinance, a report on
the success of the pilot projects.
Comment: 1. According to Ms. Vietor, DOE is requesting a new
position to administer the energy efficiency programs and
pilot projects resulting from the two ordinances, at a cost
of approximately $82,443 per year in salary and fringe
benefits. Ms. Vietor states that this position has been
approved by the Commission on the Environment as part
of DOE's proposed FY 1999-2000 budget. If the position is
also approved in the Mayor's FY 1999-2000 budget it
would be subject to appropriation approval by the Board
of Supervisors.
2. As discussed above, the following table summarizes
the estimated costs and benefits of the proposed
ordinance, Item 17, File 99-0444, over the next 15 years:
Additional Estimated Costs and Savings to
the Citv over the Next 15 Years
Net
Costs Savings Savings
Water Conservation
Low-flow toilets $75,255 $592,048 $516,793
Low-flow shower
heads 7.350 87,757 80,407
Electricity Conservation :
Improved fluorescent
lighting 150,000 1,014,880 864,880
Fluorescent lamp
recycling 30.000 (30.000)
Total $262,605 $1,694,685 $1,432,080
LED Exit Signs
(Per Fixture) $50 $443 $393
Improved outdoor floodlights
(average per fixture) $20 $859 $839
In cases where the PUC was unable to provide estimates
of the aggregate number of devices that would be
replaced, the costs and benefits cited are per fixture.
BOARD OF SUPERVISORS
BUDGET ANALYST
68
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
As shown in the table above, the City will realize a net
estimated savings of $1,432,080 with the installation of
low-flow toilets, low-flow shower heads and improved
fluorescent lighting and the recycling of fluorescent lamps
over the next 15 years. In addition, each light-emitting
diode (LED) exit sign installed will result in a savings of
$393 and each improved outdoor floodlight installed will
result in an average savings of $839 over the next 15
years.
Indoor Air Quality
According to Ms. Vietor, these requirements will not
result in any net additional costs or savings to the City.
Ms. Vietor states that the potential benefits include
increased City employee health and productivity.
Fluorescent Lamp Recycling
According to Ms. Bernardini, this requirement would
result in an additional cost of approximately $2,000 per
year to the City, or a total of $30,000 over the next 15
years.
Recyclable Storage
According to Ms. Bernardini, this requirement would not
result in any net additional costs or savings to the City.
Construction and Demolition Debris Management
According to Ms. Bernardini, this requirement would not
result in any additional cost to the City.
3. As described above, Item 18, File 99-0444, does not, in
and of itself, result in direct costs to the City. However,
the costs of pilot projects will be subject to future
appropriation decision by the Mayor and Board of
Supervisors. According to the office of the sponsor of this
legislation, the Mayor's proposed capital budget for FY
1999-2000 now being considered by the Capital
Improvements Advisory Committee includes $100,000 for
a pilot project.
Recommendation: Approval of the proposed ordinances is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
69
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71
Attachment I
Page j of 3
Estimated Savings on Showerheads in Two of Biggest Users of Showerheads-Fire Stations and Pools
^^^^JTWBWl^Mliff! 8 Wl I5fti! v p"' i "° s
Fire Station
40 Fire Stations 1 400
100 I 36.500 I J264
4.000 | 1.460.000 | $10,540
S.-'-l
$31,620
1 . According to the Fire Department. San Francisco has forty stations
2 An estimate was made that on an average day, a total of ten showers per day were made by firefighters on duly
3. Currently, almost every showerhead in municipal buildings uses 2 5 gallons per minute With the installation
of 1.5 gallon per minute showerheads. the department would be saving 1 gallon per minute or 10 gallons
per the average 10 minute shower.
4. Yearly savings is calculated at $5 40 per cd. As a department that receives its funds from the Genera) Fund.
the Fire Dept. is only changed for sewer at $5.40 per ccf. Since fire stations are open 365 days per year.
the yearly savings was calculated at 365 days
5. The average life of a showerhead is three years The average cost of a showerhead is $5-$15.
Most maintenance people could install a showerhead
Dair/.Savings
Savings irvGaflorts
fiCeanyjft
JSrvSfS
M^vipQS'overryl
DfiaoCShoweSSS!
Pool
9 Public Pools 1
120
1080
1200
10800
288.000
2.592.000
$2,079
$18,712
$6,237
$56 137
I.The San Francisco Telephone Book lists nine public pools.
2. An estimate was made that on an average day. a total of 120 showers per oay were made by visitors
to the pool, including neighbonng high schools' swim teams
3 Currently, almost every showerhead in municipal buildings uses 2.5 gallons per minute With the installation
of 1 .5 gallon per minute showerheads. the department would be saving 1 gallon per minute or 10 gallons
per the average 10 minute shower.
4 Yearly savings is calculated at $5 40 per ccf. As a department that receives its funds from the General Fund.
Rec and Park is only charged for sewer at $5 40 per ccf It was estimated the pools were open to the
public 240 days per year.
5. The average life of a showerhead is three years. The average cost of a showerhead is $5-$15.
Most maintenance people could install a showerhead
72
nHY-ur-iyyy ii>:^t>
SF ENERGY CONSERVATION
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Attachment II
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73
Attachment III
City Departments required to submit Projects for consideration:
San Francisco International Airport
Department of Public Health
Department of Human Services
Department of Parking and Traffic
Department of Real Estate
Depatment of Public Transportation
Fire Department
Mayor's Treasure Island Project Office
Police Department
Public Utilities Commission
Recreation and Park Department
San Francisco Public Library
War Memorial and Performing Arts Center, Asian Art Museum of San
Francisco, and Fine Arts Museum of San Francisco
Port of San Francisco
Sheriffs Department
74
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Item 19 - File 99-0732
Note: This item was continued by the Finance and Labor Committee at its meeting
of May 5, 1999.
Department:
Item:
Amount:
Source of Funds:
Description:
Municipal Railway (Muni)
Release of reserved funds in the amount of $468,862 to
partially fund the Muni Electrical Improvements Project.
$468,862 (see Comment)
Federal Surface Transportation Funds
In October of 1992, the Board of Supervisors approved a
resolution authorizing the Public Utilities Commission
(PUC) to apply for, accept and expend $1.2 million of Federal
Surface Transportation Funds and $300,000 of local and
regional matching funds, for a total of $1.5 million for the
design and rehabilitation of MUNI's fixed facilities
(Resolution No. 907-92, File 94-92-8). That $1.5 million
grant represented a portion of Muni's overall $7.5 million
Metro Subway Modifications Project. Planned modifications
associated with this Project included alterations to the
subway, surface and maintenance systems to accommodate
larger light rail vehicles (LRVs) than were previously in
service in the Muni fixed rail system.
Of the total $1.5 million authorized in October of 1992,
$1,273,862 was placed on reserve for capital improvement
projects, pending the selection of contractors and submission
of cost details. 1 According to Mr. Jerry Levine of Muni, since
the initial reserve, the Board of Supervisors has approved the
release of $805, 000 2 of the total original reserve of
$1,273,862, leaving a balance remaining on reserve of
$468,862 (see Comment).
1 Mr. Levine explains that the reserve balance of $468,862 was not needed until the present time
because final analyses of necessary electrical modifications for the new LRVs had not been
completed.
2 These funds were applied towards Muni's Dynamic Envelope Improvements which made various
modifications to LRV maintenance and storage facilities to accommodate the new, larger LRV
vehicles. The Dynamic Envelope Project is also a component of the Metro Subway Modifications
Project.
BOARD OF SUPERVISORS
BUDGET ANALYST
75
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
Mr. Levine explains that the subject request of $468,862
would provide partial funding for Element I of the Muni
Metro $6.5 million Electrical Improvements Project.
Element I would fund preliminary engineering, design and
construction support necessary to upgrade electrical systems
within the Muni Metro Tunnel to be consistent with the
technology of the new light rail vehicles (LRVs), including
the replacement of an outdated emergency telephone system.
According to Mr. Levine, Element I is budgeted at $608,363
and would be financed by this subject request of $468,862
currently on reserve as well as $139,501 of previously
allocated funds. Attachment I, provided by Muni, contains
the estimated project elements and costs for the Muni Metro
Electrical Improvements including the Element I costs of
$608,363.
Budget:
A summary budget provided by Muni for Element I of the
Electrical Improvements is as follows:
Muni Labor (Preliminary Engineering,
Design, Construction Support)
Equipment/Construction (Replacement
Of Emergency Telephone System)
$528,363
80.000
$608,363
Attachment II, provided by Muni, contains the budget details
to support this budget of the Muni in-house engineering staff
of $528,363 as well as the emergency telephone system costs
of $80,000.
Comment:
According to Mr. Levine, the subject release incorrectly
requests $423,862 as the amount to be released. This
amount resulted from data transposition and arithmetic
errors. Mr. Levine reports that the correct amount to be
released is $468,862 which is the balance remaining on
reserve.
Recommendation:
In accordance with the above Comment, approve the release
of reserved funds of $468,862.
BOARD OF SUPERVISORS
BUDGET ANALYST
76
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
r /7
">-v
Harvey M. Rose
/ ^^-^
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
BOARD OF SUPERVISORS
BUDGET ANALYST
77
Attachment I
Public Transportation Department
Muni Metro Electrical Improvements Project
Estimated Project Elements and Costs
Element I
Muni Labor
Preliminary Engineering/ Design/
Construction Support
Equipment/ Construction
Replacement of Emergency Telephones
Element II
Muni Labor
Detailed Design/ Construction Support
Equipment/ Construction
Replacement of Gap Breakers
Replacement of Emergency Lighting
Replacement of Ambient Lighting
Replacement of Emergency Power
Replacement of Fire Alarm Systems
Replacement of Signal Bancries
Replacement of Emergency Signage
Replacement of Receptacles, as needed
$528363
$80,000
T/t J 7(3
S75 1,637
Sl.600,000
$1,350,000
S2.190.000
Subtotal:
S6p00,00
78
Attachment II
Page 1 of 3
79
NAY-04-1999 16:40
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Attachment II
Page 2 of 3
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Attachment II
Page 3 of 3
MUNICIPAL RAILWAY FIRE PHONES
LOCATION
Lenox
West Portal
Forest Hills
Castro
Church
Duboce
Van Ness
Civic Center
Powell
Montgomery
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City and County of £an Francisco
Meeting Minutes
^Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102-*689
Wednesday, May 19, 1999
10:00 AM
Regular Meeting
City Hall, Room 263
Members Present: Sue Bierman, Tom Ammiano.
Members Absent: Leland Y. Yee.
Meeting Convened
The meeting convened at 10:04 a.m.
REGULAR AGENDA
990761 [Hazardous Materials and Hazard Waste Fee Amendment)
Ordinance amending Health Code by amending Sections 1 176, 1191 and 1204 to provide for changes in the
fees charged by the Department of Public Health for various services related to hazardous materials and
hazardous waste beginning in the fiscal year 2000. (Department of Public Health)
4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Sue Cone, Department of Public Health; Harvey Rose, Budget Analyst;
Supervisor Ammiano ; Doug Kern, Chair, Hazardous Materials Advisory Committee.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990785 [Appropriation, Airport Commission)
Ordinance appropriating $143,500,000, Airport Commission, of San Francisco International Airport Bond
proceeds-issue 24 to professional services, interest expense, and a capital improvement project for the
renovation of the North Terminal, and construction of a new parking facility, concession facility, and museum
space for fiscal year 1998-1999; placing $143,500,000 on reserve. (Controller)
(Fiscal impact.)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Jon Ballesteros, Airport.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
City and County of San Francisco
Printed at 10.09 AM on 6Z///99
Finance and Labor Committee
Meeting Minutes
May 19, 1999
990917 (Appropriation, Airport]
Ordinance appropriating $57,1 1 1,485, Airport Commission, of various Bond fund balances and interest earned
to fund capital improvement projects, including construction of the new underground West Field Detention
Pond, the Concourse H/Airtrain Station, and other approved infrastructure projects in the Airport's capital plan,
for fiscal year 1998-1999. (Airport Commission)
(Fiscal impact.)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jon Ballesteros. Airport.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990798 [Building Inspection Commission Appeals)
Ordinance amending Administrative Code by adding Chapter 77 and amending Building Code by adding
Section 105.8 to implement the Charter- mandated appellate authority of the Building Inspection Commission,
to provide that appeals heard by the former Abatement Appeals Board shall be heard by the Commission, and
to authorize an exemption from or refund of appeal fees under specified circumstances, amending Table 1-K
of the Building Code to establish Building Inspection Commission Appeal Fees. (Department of Building
Inspection)
(Adds Administrative Code Chapter 77; adds Building Code Section 105.8 and Table 1-K)
4/21/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; William Wong, Department of Building
Inspection; Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990809 [Reserved Funds, PUC/Dept of Administrative Services]
Supervisor Yee
Hearing to consider release of reserved funds, $91,400 (Public Utilities Supplemental Appropriation. File No.
990245), and $464,880, (Department of Administrative Services Fiscal Year 1998-1999 Budget), to defray
expenses related to the reuse of space at 875 Stevenson.
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst, Tony DeLucchi, Real Estate Department;
Supervisor Ammiano. Release of funds approved as requested.
APPROVED AND FILED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
City and County of San Francisco
Printed at 10:09 AM on 6/1 1/99
Finance and Labor Committee
Meeting Minutes
May 19, 1999
990853 [Roof Equipment License Agreement]
Resolution authorizing a retroactive roof equipment license extension agreement for 555 California Street for
the Department of Telecommunication and Information Services. (Real Estate Department)
4/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department;
Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990856 [Lease of Real Property]
Resolution authorizing the lease of real property at 1 60 South Van Ness for the Department of Human
Services. (Real Estate Department)
(Fiscal impact.)
4/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi. Real Estate Department; Rose
Chow, Department of Human Services; Supervisor Ammiano..
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990902 [Lease of Property]
Resolution approving extension and second modification of commercial lease for Parcel No. 2 at the Moscone
Center Garage (257 Third Street between Folsom and Howard Streets). (Real Estate Department)
5/4/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990908 |Lease of Real Property]
Resolution authorizing a lease of real property at 1975-1999 Bryant Street for the Department of Parking and
Traffic. (Real Estate Department)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department;
Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
City and County of San Francisco
Printed at 10:10 AM on 6/11/99
Finance and Labor Committee
Meeting Minutes
May 19, 1999
990909 [Renewal, Long Term Provisional Appointments]
Resolution approving the renewal of provisional appointments through December 31, 1999, for employees in
classes for which no eligible list exists and who have been employed m the class more than three years,
pursuant to San Francisco Charter Sectionl0.105 and upon certification by the Human Resources Director
that, for reasons beyond her control, the Department has been unable to conduct examinations for these
positions. (Department of Human Resources)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Linda Marini, Department of Human
Resources; Supervisor Ammiano ; Leslie Abbott, Local 21.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990918 [Water Rates)
Ordinance approving revised schedule of service fees to be charged by the San Francisco Public Utilmes
Commission to retail water customers in San Francisco and suburban areas. (Public Utilities Commission)
(Fiscal impact; SUBSTITUTED by Public Utilities Commission 5/10/99 bearing same title.)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. With direction to report back to Board May 24, 1 999
5/10/99, SUBSTITUTED
5/10/99, ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Andy Moran, General
Manager, Public Utilities Commission.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
990924 [Water Rates)
Ordinance approvmg revised schedule of rates to be charged by the San Francisco Public Utilities Commission
for water service to its suburban resale customers. (Public Utilities Commission)
(Fiscal impact.)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee With direction to report back to Board May 24, 1 999.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Andy Moran, General
Manager, Public Utilities Commission.
RECOMMENDED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
ADJOURNMENT
The meeting adjourned at 1 1:00 a.m.
Cily and County of San Francisco
Printed at 10:10 AM on 6/1 1 799
Public Library,Gov't Info. Ctr., 5 th Fir.
Attn: Susan Horn
0.Z61-
ij¥\
CITY AND COUNTY
OF SAN FRANCISCO
/
BOARD OF SUPERVISORS
BUDGET ANALYST
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
TO: , Finance and Labor Committee
FROM: .Budget Analyst
SUBJECT: May 19, 1999 Finance and Labor Committee Meeting
Item 1 - File 99-0761
May 14, 1999 D °CUMENTS DEPT.
MAY 1 8 1999
SAN FRANCISCO
PUBLIC LIBRARY
Department: Department of Public Health (DPH)
Item: Ordinance amending Sections 1176, 1191, and 1204 of Part
II, Chapter V of the San Francisco Municipal Code (Health
Code) to provide for changes in the fees charged by the
Department of Public Health for various services related to
hazardous materials and hazardous waste beginning in
Fiscal Year 2000.
Description: The proposed ordinance would revise fees effective July 1,
1999 charged for State-mandated 1 hazardous materials
regulation services provided by the Department of Public
Health's Hazardous Materials Unified Program Agency
(HMUPA). According to Ms. Sue Cone of DPH, HMUPA
regulates businesses that store hazardous materials either
above ground or in underground storage tanks or that
generate or treat hazardous waste. Ms. Cone explains that
regulated businesses pay fees based on the amount of
hazardous material stored, the number of underground
storage tanks, the amount of hazardous waste generated and
the treatment method used. Ms. Cone further explains that
these fees cover the costs for DPH to provide regulation
1 According to Ms. Cone, this service mandate is included in the State of California Health <t Safety
Code, Chapter 6.11.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 12, 1999 Finance and Labor Committee Meeting
services, including the conducting of inspections of applicable
businesses and related administrative costs.
Comment:
Recommendation:
Ms. Cone reports that HMUPA fees have not been increased
since November 1997. Ms. Cone explains that the proposed
fee increases would be implemented over the course of four
years with initial implementation planned for July 1, 1999,
as reflected in the Attachment to this report provided by
DPH. Ms. Cone further explains that the proposed fee
increases are being proposed to fully recover the costs of the
HML T PA hazardous materials regulation services.
The Attachment to this report, provided by DPH, lists all of
the existing fees, the proposed fees and the dollar and
percentage fee increases.
According to Ms. Cone, the total annual revenues realized
from the existing fees are estimated at $1 million and the
proposed fees would result in estimated increased annual
revenues of $200,000 in the first year of implementation,
$400,000 in the second year of implementation, $600,000 in
the third of implementation, and $800,000 in the fourth year
of implementation. These annual revenue increases would
result in total estimated annual revenues of SI. 2 million in
the first year of implementation, $1.4 million in the second
year of implementation, $1.6 million in the third of
implementation, and $1.8 million in the fourth year of
implementation and thereafter. Ms. Cone reports that all
such fee revenues are included in the DPH annual budget.
As previously noted, Ms. Cone reports that the proposed fee
increases are for purposes of fully recovering the
Department's costs of providing the State-mandated HMUPA
hazardous materials regulation services.
Approval of the proposed ordinance is a policy decision for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
2
Attachment
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Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Item 2 - File 99-0785
Department:
Item:
Amount:
Source of Funds:
Description:
Airport
Ordinance appropriating $143,500,000 for renovation of the
Airport's North Terminal, expansion of the International
Terminal's retail concession facilities, construction of a new
International Terminal public parking facility, construction
of a new public aviation archive/museum in the new
International Terminal, and related costs; placing
$143,500,000 on reserve.
$143,500,000
San Francisco International Airport Second Series Revenue
Bonds
In March 1999, the Board of Supervisors approved a
resolution (File 99-206) authorizing the issuance of up to
$165,000,000 in San Francisco International Airport Second
Series Revenue Bonds for the purpose of financing or
refinancing certain infrastructure improvements at San
Francisco International Airport. The proposed ordinance
would appropriate $143,500,000 in such Airport Revenue
Bond Fund monies for the following projects:
Renovation of the North Terminal. Phase 1
($40.500.000)
Ceiling, lighting, sprinkler and seismic upgrades would be
performed. In addition, concession space for retail shops,
including food and beverage facilities, would be expanded b\'
12,000 square feet, from 39,000 square feet to 51,000 square
feet. Office space available for rental by airlines would also
be increased by 44,000 square feet, from 367,500 square feet
to 411,500 square feet.
Expansion of International Terminal Concession
Facilities ($41.600.000)
This project would increase concession space for retail shops,
including food and beverage facilities, in the new
International Terminal by 50,000 square feet, from 83.000
square feet to 133,000 square feet. Mr. Kevin Kone of the
Airport advises that this project is a change to the original
design of the International Terminal which called for 83,000
BOARD OF SUPERVISORS
BUDGET ANALYST
9
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
square feet of concession space. Therefore, the requested
funds are required to make these modifications.
Construction of a New International Terminal
Parking Garage (S37.500.000)
This project is to add a parking facility with approximately
1,437 new public parking spaces adjacent to the new
International Terminal.
Construction of a Public Aviation Archive/Museum
(S4.000.000)
This project is to construct a new public aviation archive/
museum in the new International Terminal at the Airport.
The proposed space will contain a research library with over
15,000 airport and aviation related volumes available to the
public as well as a two-level 8,500 square foot museum that
will display model airplanes and archive materials.
The Attachment, provided by the Airport, provides additional
details about the four projects described above.
Budget: A summary budget for the requested appropriation of
$143,500,000 is as follows.
North Terminal Renovation. Phase 1 $40. 500,000
International Terminal Concession Facilities 41.600,000
North International Terminal Parking Garage 37,500.000
Aviation Archive/Museum 4.000.000
Total Project Costs S 1 23.600,000
Contingency (1.1 percent) 1,400,000
Capitalized Interest Fund 18.000,000
Issuance Costs 500.000
Total S143.500.000
Comments: 1. Mr. Kone advises that the contract for the Expansion of
the International Terminal Concession Facilities
($41,600,000) and the contract for the new International
Terminal Parking Garage ($37,500,000) have been
competitively bid and were awarded to Tutor Saliba, the low
bidder for both projects. Mr. Kone, contractors for the North
Terminal Renovation and Aviation Archive/ Museum projects
have not yet been selected and that the contracts for both of
these projects will be awarded on a competitive basis.
BOARD OF SUPERVISORS
BUDGET ANALYST
10
Memo to Finance and Labor Committee
Ma} 7 19, 1999 Finance and Labor Committee Meeting
2. The proposed ordinance would place the entire requested
amount of $143,500,000 on reserve subject to subsequent
release by the Finance and Labor Committee pending the
receipt of the 1999 San Francisco International Airport
Second Series Revenue Bond proceeds and the certification of
the availability of funds by the Controller. Mr. Kone advises
that additional contractor information and budget details
will be provided to the Board of Supervisors prior to the
release of the requested funds.
Recommendation: Approve the proposed ordinance.
BOARD OF SUPERVISORS
BUDGET ANALYST
11
Attachment
Page I of 3
Airport
Coainrtxioi
Civ tnd County
o* San Frmnciacs
Willie L Brown. Jr.
Mayor
Henry l Berm.n San Francisco I ntern ational Airport
PretiderC ■ymf'
Larry Mazznla gatswat to the pao* ic
Vise Prsaiden:
Micflael S. Smirafcy
Lmrja S. Crayttn
Caryl to
VIA FAX
JOHN L MARTIN
Airport Diracrar
May 14, 1999
Ms. Monique DeJong, Budget Analyst
3oard of Supervisors
1390 Market Street, Suite 1025
San Francisco, CA 94102
Dear Ms. DeJong:
Below you will find the project description that you requested for the Airport's SI 65
Million Irifrastructure 3ond Supplemental Appropriation request.
North Terrrrinal Renovation Proiect
The North Terminal, completed in 1979, is in need of a partial renovation in order to
meet certain safety and security requirements, provide better service to the customer and
accommodate business development growth.
The North Terminal facility does not meet the same safety and security standards that
exist in other terminals. The installation of a sprinkler system, seismic retrofit of the
utilities system and the nrcproonng of certain areas are required m order to upgrade the
facility's safety and security components. Also, from a customer convenience and
aesthetic point of view, the hghting and ceiling systems need to be upgraded along with a
number of other enhancements.
In addition to safety, security and customer convenience, the Concession/Service
Program in the North Terminal is significantly undersized and, therefore, unable to
provide the level of access and service for the volume of people who use this terminal.
Similar to the existing International Terminal's very high concession sales per square foot
and sales per enplaned passenger, the North Terminal's sales statistics indicate that the
Airport may be losing or foregoing sales and revenues from its concession program due
to saturated levels. From an operational perspective, the terminal also lacks suitable
office and support space for usage by the airlines and other tenants.
SAN FRANCISCO INTERNATIONAL AIRPORT- P.O. BOX KH7 . SAN FRANCISCO CAUFORNIA 9412S.TH£PH0N= (GDI 794-50TX . FAX Raj nt^ci
12
Attachment
Page 2 of 3
Monique DcJong
Page 2
May 14, 1999
International Terminal Concession Plan
The Airport has analyzedtiie bass or Existing Plan for the concession program in the new
International Terminal Building (TTB) and forecasts that the concession space wfll not
adequately support the forecasted amount of international passenger tr affic The analysis
indicates that within three years of opening, the concession space, on a per passenger
basis, will approach the levels of saturation currently experienced in the existing
International Terminal There is also the strong probability that the Airport is losing or
foregoing sales and revenues from its concession program due to saturated levels during
peak periods in the existing International Terminal. This is evidenced by the extremely
high sales per enplaned passenger, one of the highest of any single terminal in the U.S.,
as well as higher than normal concession sales per square foot In addition, the sight lines
and layout of the Existing Plan do not integrate properly with the relative geometry of the
building and passenger flow patterns thereby reducing the effectiveness of the concession
space.
In order to op timize concession revenues and customer service in the ITB, the Airport is
proposing an Alternate Plan to develop space on the east wall of the ITB for retail
concessions and reconfigure certain portions of the ITB and connectors to the Boarding
Areas. This plan will increase planned concession space by 60% from 83,000 square feet
to 133,000 square feet Given the very favorable sales and revenues currently being
achieved in the existing International Terminal and the forecast rate of international
passenger growth, constructing adequate concession space during the current
development phase will be required to optimize revenue potential in the ITB. Concession
space planning and revenue analysis is provided in the Analysis of Incremental Sales and
Revenue Alternative Concession Plan prepared by Leigh Fisher Associates.
The Alternate Plan includes the build out of the cast wall of the ITB and other
modifications to increase concession space from 83,000 square feet to 133,000 square
feet The build out envisioned in the Alternate Plan will not affect the operational
effectiveness of the ITB. Nor will it affect the scheduled opening of the ITB. The project
scope and costs are included in the Concessions Revision Study.
The new concession space will be allocated among duty free, food and beverage, retail
merchandise, services and storage. Based on retail industry conditions, the Airport will
focus on high quality specialty retail concessions. Depending on passenger growth and
market conditions, storage space will be made available for retail concession usage at the
time of the ITB opening or within the first five years of operation in order to maxJmtgn
revenues.
13
Attachment
Paee 3 of 3
Moniquc DcJong
Page 3
May 14, 1999
North International Terminal Garage
The North. International Parking Garage is a nine-level concrete strucTurc. This structure
will provide parking spaces for 1,437 automobiles. This project also includes on grade
surface parking and landscaping adjacent to the structure. This structure is adjacent to
the Concourse H/3ART Station.
Aviation library and the L.A. Turner Museum
The Aviation Library Museum will be a self-contained building within the International
Terminal It is a replication of the 1937 passenger terminal.
A research horary consisting of rare books and an archive. The library itself will house
15,000 volumes in a secured space. Additionally there will be e work area for staff
consisting of a book processing area and computer workstations.
A museum consisting of galleries in denned wall areas that can be named for donors.
Display cases for models and archival museum material Within the bi-leveL 8.500
square foot museum, staff will have the ability to hang airplane models from the ceiling.
Certain museum exhibitions will be- visible from the terminal concourse area
If you have any further questions, please call Kevin Kone of my staff at 650-373-2887.
Very truly yours,
"KU,- r
-pr
Marcus Perro
Executive Financial Officer
14
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Item 3 - File 99-0917
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Airport
Ordinance appropriating $57,111,485 to partially fund three
Airport capital improvement projects, including (1) design
and construction of the Concourse H/AirTrain Station; (2)
construction of a new West Field Detention Basin; and (3)
the Taxiway "C" Overlay Project.
$57,111,485
Various Airport Bond Fund Balances (a list of the 32 Airport
bond funds and the amount to be appropriated from each
appears on the ordinance).
The proposed ordinance would appropriate $57,111,485 in
interest earned on various Airport bond fund monies (a list of
the 32 Airport bond funds and the amount to be appropriated
from each appears on the ordinance) to partially fund the
following projects: (1) design and construction of the
Concourse H/AirTrain Station; (2) construction of a new West
Field Detention Basin; and (3) the Taxiway "C" Overlay
Project. A description of each of these projects, provided b\ r
the Airport, is shown on Attachment I.
The requested appropriation of $57,111,485 would partially
fund the three Airport projects. The Table below is a
summary budget for each of the projects, showing the total
amount of each project, the amount to be funded by the
subject supplemental appropriation and the remaining
balance.
Balance to be
Funded With a
Future
Amount to Be
Supplemental
Funded Bv
Appropriation
Amount
This
of Airport Bond
Total
Previously
Supplemental
Fund Interest
Proiect
Proiect Costs
Appropriated
Appropriation
Earninffs*
Concourse H/AirTrain Station
S114.365.500
S52.451.462
S48.103.092
S13.810.946
West Field Detention Basin
8,637.505
7,644,199
993.306
Taxiway "C" Overlay
5.144.349
3.602.888
1.364.194
177.267
Total
5128,147.354
S56.054.350
$57,111,485
$14,981,519
Subject to separate appropriation approval by the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
15
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Comment:
As shown in the Table above, the total project costs for the
three projects is $128,147,354. Of that amount, $56,054,350
has been previously appropriated, $57,111,485 would be
funded by the subject supplemental appropriation of Airport
bond fund interest earnings and $14,981,519 would be
funded through a future supplemental appropriation of
Airport bond fund interest earnings, subject to separate
approval by the Board of Supervisors. According to Mr. Kevin
Kone of the Airport, currently there is a total balance of
$57,111,485 in Airport bond fund interest earnings.
However, the Airport projects that an additional amount of
bond fund interest earnings will be generated in excess of the
$14,981,519 needed to complete the funding of the projects.
Mr. Kone states that once the remaining $14,981,519 in
projected interest earnings have been earned, the Airport
will submit a supplemental appropriation request for these
funds, subject to separate approval by the Board of
Supervisors.
Attachment II. provided by the Airport, is a list of contractors
and subcontractors for each of the projects. Mr. Kone reports
that the three projects were competitively bid and in each
case the low bidder was selected.
Recommendation: Approve the proposed ordinance.
BOARD OF SUPERVISORS
BUDGET ANALYST
16
Attachment I
San Francisco International Airport
Projects to be funded from Interest Income
February 9, 1999
Project 5670A-Concourse H/AirTrain S tation
This project consists of the design and construction of station facilities to
accommodate Bay Area Rapid Transit (BART). It will also provide a direct link
from BART to the AirTrain System and the new International Terminal.
Project 3487 -West Field Detention Basin
This Project will construct a new underground West Field Drainage Detention
Basin to replace the existing West Field Detention Pond. This Project is Tequired
to provide more storage capacity to provide more storage capacity to meet the
State of California storm water requirements.
Project 3192B-Taxrway "C" Overlay
This Project will provide asphalt overlay to smooth and level the pavement
surface of Taxiway "C" and the necessary adjustments to the existing lighting
system. The work comprises of extending Taxiway a C" to Taxiway "S" ,
overlaying Taxiway "P* at Runway 28R, paving panting lot for equipment
. storage, construction of a new drainage systems and 48 inch drainline,
construction of 20 inch sewer m^i^, construction of 36 in jet fuel line casings,
construction of electrical duct banks and construction of electrical taxiway
lighting systems.
17
Artachner. t ,1
Page i of 2
CT567J1.A H / Air Train Station:
Contract Awarded to Tntor Saliba
Total cost- $114,365,500
MBE - 33.2% (538,106,464)
WBE- 1.1% ($1,309,000)
Original Goals: 18% MBE, 3% W3E
Stare February 19, 1998
End: March 2000
Sub-Contractors:
LTM Construction - Form-work (MBE, $3,960,000)
Rios Grading - Excavation (MBE, SI, 060,000)
San Luis Gonzaga - Mechanical (M3E, S2,<i45,000)
Scott Norman - Firs Protection (M3E, S2, 190,000)
WSB & Associates - Security (MBE, S67.000)
Cresci Electric - Supplier (W3E, S3 00,000)
Miller Thompson Construction - Utilities (WBE, 5385,000)
Phoenix Painting Co. - Painting (WBE, 5624,000)
Martinez Steel - Rcbar (MBE®, S5,025,464)
Regional Steel - Stcel-Remforcing (M3E®, S15^29,000)
Accu-cretc, Inc.- Concrete (MBE®, 58,130,000)
Amclco Electric - Electrical (S5.165.0O0)
Craneveyor - Railing (SI, 500,000)
Custom Enclosures - (SI, 732,000)
Foundations Constructors - Piles (S8,900 : 000)
George Family Entemrisc - Acoustical (52,300,000)
Model Glass - (54,225,000)
Pierce Enterprise - Plastic, Drywall (S4, 100,000)
Sure Forming System - Form-work (51,400,000)
Willis Corporation - Precast (51,590,000)
NOTE: ® - (Registered firm) - Minority firm based outside of San Francisco.
18
Attachment II
Page 2 of 2
CT3192.B CF\ A) Ta^iwav "C" Extension & Tariwav "P" Overlay Utilities
Construction:
Contract awarded to Pavel Construction Co.
Total Cost- S 5,144,349
DBE - 46.6% (52,397,416)
Ori ginal D3E Goal; 20%
Start: January 1998
End: Estimated completion dais: December 1998
Sub-Contractors:
Airport Paving Making — Striping (D3E, S5 1,850)
JM3 Construction- Underground (DBE, 51,389,000)
Carefree Greens - Hydro-seeding (D3E®, 53,000)
J. Cannon Engineering - Electrical (DBE®, S934,000)
Central Fence'Co. - Fencing - (DBE, $19,566)
Anrak Corporation - Grinding (S36,000)
Advance Environmental Systems - Hazardous Materials (51 13,960)
FAA Project- M/W3Es Ide ntifi ed as DBEs (Disadvantaged Business Enterprises)
CT3487 West Field Detention Basin;
Contract awarded to Dennis J. Amoroso/Trieo WBE (JV)
Total Cost - S8,637,505
M3E - 27.4% (52,370,000)
WBE - 51% (54,405,127) - Joint Venture Parmer
Original Goals: 18% MBE, 7% WBE
Start: July 1997
End: August 1999
Sub-Contractors:
Transamerican Eng. & Assoc- Earthwork, Utilities (MBE, SI, 800,000)
Coast Geoconstrucors - Shoring (MBE, S270.000)
3arri Electric - Electrical (MBE, 5300,000)
Dolan - Concrete (5120,000)
RPM-Rebar (58 11,000)
CFCC - Horizontal Form-work (S700,000)
19
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 4 - File 99-0798
Department: Building Inspection Commission (BIC)
Department of Building Inspection (DBI)
Item: Ordinance amending Part I of the San Francisco Municipal
Code (Administrative Code) by adding Chapter 77 thereto
and amending Part II, Chapter I of the San Francisco
Municipal Code (Building Code) by adding Section 105.8
thereto to implement the Charter-mandated appellate
authority of the Building Inspection Commission, to provide
that appeals heard by the former Abatement Appeals Board
shall be heard by the Building Inspection Commission, and
to authorize an exemption from or refund of appeal fees
under specified circumstances; amending Table I-K of the
Building Code to establish Building Inspection Commission
appeal fees.
Description: According to Mr. Frank Chiu of the Department of Building
Inspection (DBI), this proposed ordinance would establish
new fees for appeals to be heard by the BIC which was
established by Proposition G in 1995. Mr. Chiu explains that
the BIC hears appeals on all (1) decisions and determinations
regarding permit applications under the Building, Housing,
Electrical, Mechanical and Plumbing Codes, (2) decisions or
determinations by the Department of Building Inspection
(DBI) in the enforcement of the Building, Housing, Electrical,
Mechanical and Plumbing Codes, (3) decisions or
determinations made by the Department of Public Works
(DPW) on sidewalk and encroachment permits and other
matters necessary for the completion of occupancy of
structures, (4) decisions by the Water Department (WD)
necessary for the completion of structures, (5) failure of DBI.
DPW, WD to render a written decision or determination
within fifteen days of a request from a member of the public
to do so. Mr. Chiu further explains that the above-listed
appeal rights did not exist prior to the passage of Proposition
G and the resulting creation of the BIC.
Ms. Maria Banico of Building Inspection Commission
clarifies that although the BIC was established in 1995, the
DBI had not previously requested that the appeals fees be
established. Ms. Banico reports that the proposed fees for
the appeals to be heard by the BIC are as follows:
BOARD OF SUPERVISORS
BUDGET ANALYST
20
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Comment:
Recommendation:
BUILDING INSPECTION COMMISSION HEARING FEES:
Notice of Appeal $100
Request for Jurisdiction $100
Request for Rehearing $100
Ms. Banico explains that one appellant may be required to
pay one or all the proposed fees depending on the nature of
the appeal. According to Ms. Banico, the BIC has heard one
appeal in FY 1998-99 and five appeals in FY* 1997-98 for
which no fees were charged because the authority to collect
fees for these appeals was never requested by the DBI. Ms.
Banico estimates that BIC will receive between $200 and
$500 in annual revenues from the proposed new fees based
on two to five appeals annually.
According to Ms. Banico, although the proposed fees do not
cover the BIC's and DBFs costs for an appeal process, Ms.
Banico states that the proposed fees reflect the BIC's desire
to make the appeal process affordable while also
discouraging the submittal of spurious appeals.
Approval of the proposed ordinance is a policy decision for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
21
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Item 5 - File 99-0809
Department:
Item:
Amount:
Source of Funds:
Description:
Department of Administrative Services (DAS)
Department of Real Estate
Request for release of $556,280 of reserved funds to
defray expenses related to the reuse of leased space
at 875 Stevenson Street.
$556,280
$91,400
464.880
Public Utilities Commission
Supplemental Appropriation, Water,
Hetch Hetchy and Clean Water Fund
balances (Reserved by the Finance
and Labor Committee at its meeting of
April 21, 1999 - File 99-0245)
Department of Administrative
Services Fiscal Year 1998-99 Budget,
General Fund
$556,280 Total
The Board of Supervisors approved a lease for a
total of approximately 150,000 square feet of space
on five floors at the 875 Stevenson Street facility in
1994. This lease, through the Real Estate
Department, which was amended in 1996, extends
until November of 2002 with three different options
to further extend the lease from six months to 7.5
additional years (through May of 2010) with the
rent to be adjusted to 95 percent of the then
prevailing market rental rates. Mr. Steve Legnitto
of the Department of Real Estate reports that the
current lease costs, without utilities, janitorial and
security services are approximately $1.33 per
square foot per month, or $16 per square foot per
year at 875 Stevenson Street.
The requested $556,280 release of reserve would be
used to fund construction renovations for 42,955
rentable square feet of space, leased by the City at
875 Stevenson Street from the General Fund for
four City departments, including the Public
BOARD OF SUPERVISORS
BUDGET ANALYST
22
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Administra tor/Public Guardian (PA/PG), the
Controller's Payroll and Personnel Services
Division (PAPG), the Municipal Railway (MUNI)
and the Assessor.
According to Mr. Tony DeLucchi of the Real Estate
Department, now that various City departments
have moved from 875 Stevenson Street to the
renovated City Hall, the Real Estate Department is
backfilling the vacated space at the 875 Stevenson
Street facility, with the concurrence of the City
Hall Policy Committee. Mr. DeLucchi reports that
the City Hall Policy Committee, which is comprised
of representatives from the Controllers Office,
Treasurer's Office, Department of Administrative
Services, Mayor's Office, Department of Public
Works and other City staff representatives, have
been meeting for over a year to provide direction
and reuse of City Hall and the surrounding office
space in the Civic Center. Mr. Legnitto reports that
the reuse of the 875 Stevenson Street by the four
General Fund City departments does not represent
a new lease for the City.
Under the proposed renovation of 875 Stevenson
Street, the four General Fund City departments
would relocate into this facility, from their current
locations, as summarized in Attachment 1. Mr.
Legnitto reports that the Assessor's staff, currently
located on the third floor of 875 Stevenson Street
would be relocated to the ground floor of 875
Stevenson Street in order to consolidate the
Assessor and Recorder functions on the first floor
and to provide the entire third floor for use by the
PUC. The Controller's PPSD staff is currently
located in leased facilities at 160 South Van Ness.
According to Mr. Legnitto. the lease on the facilities
at 160 South Van Ness expires on June 30, 1999
and an extension of this lease is currently being
renegotiated by the Real Estate Department for use
by the Department of Human Services (DHS) for
their new hires and to relocate staff from other
DHS work sites (See Item 7, File 99-0S56 of this
report to the Finance and Labor Committee).
BOARD OF SUPERVISORS
BUDGET ANALYST
23
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
The space currently occupied by tbe Public
Administrator-Guardian, which is located at 25
Van Ness Avenue, a City-owned building, would be
occupied by the Department of Parking and Traffic
(DPT) for their new Traffic Control Center and for
their relocated Residential Permit Parking
Program, which is currentry located in the
Performing Arts Garage. Mr. Legnitto notes that
the approval of the lease expansion for DPT to
move into the space vacated by the Public
Administrator-Guardian is not subject to the Board
of Supervisors approval, except for the budgetary
authorization, because the City owns 25 Van Ness
and it is simply a reuse of the existing space.
Mr. Jim Nelson of MUNI reports that under the
proposed move, the MUNI Management
Information System (MIS) Division, which has a
total of approximately ten staff located at various
locations throughout the City, would be
consolidated in the Civic Center area at 875
Stevenson Street. Mr. Nelson reports that the
vacated space will likely be absorbed by other
MUNI staff throughout the City. In addition, Mr.
Nelson notes that MUNI Security, which currently
has approximately five staff and is currently
located at 1345 Turk Street, a City-owned facility,
would be expanded to approximately 20 staff and
relocated to 875 Stevenson Street. Mr. Nelson
reports that the freed up space by MUNI at 1345
Turk Street will be used by the Art Commission, as
part of a redevelopment project. Mr. Phil Chin of
MUNI Security reports that MUNI's Security staff,
under three programs (1) MUNI Transit
Assistance, (2) Video Surveillance and (3) Proof of
Payment, was authorized for the proposed increase
of approximately 15 positions in the current FY
1998-99 budget.
The following chart compares the current square
footage and rents with the proposed square footage
and rents at 875 Stevenson Street for the four
General Fund departments.
BOARD OF SUPERVISORS
BUDGET ANALYST
24
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
875 Stevenson Street
Annual
Current
Current
Cost
Proposed
Proposed
Square
Annual
Per
Square
Annual
Deoartment
Footaffe
Rent !
5q. Ft.
Footaffe
Rent***
PPSD
15.000
$180,000
$16
12,543
$200,688
PAPG
9,521
152,405
16
13,223
211,568
MUNI
3.000
0**
16
7.765
124,240
Assessor
10.791*
258.976
16
9.424
150.784
Total
38.312
$591,381
42,955
$687,280
*Assumes approximately 2/3 of 16,186 square feet of space actually
currently being used by Assessor staff that were not moved to City Hall.
**Assumes no rent because MUNI currently occupies only City-owned
space and does not pay rent for such space.
***Actual costs for these four General Fund departments will total
approximately $917,519, an additional $230,239, due to the utility,
janitorial and security costs at 875 Stevenson Street.
Budget: Attachment 2, provided by Mr. Steve Nelson of the
Department of Administrative Services identifies
the construction costs for the Controllers Payroll
and Personnel Services Division (PPSD), the Public
Administrator/Public Guardian (PAPG) and the
Municipal Railway (MUNI). As shown in
Attachment 2. the estimated construction cost for
renovation of 875 Stevenson Street for these three
departments is $711,315. However, based on the
use of Department salary, capital project and
operational savings of $146,435 from PPSD and
$100,000 from PAPG, for total departmental
savings of $246,435 (See Comment No. 1 for
additional details), the Department of
Administrative Services is now requesting
$464,880 ($711,315 less $246,435) for construction
costs, which is the amount of the subject release of
reserve from the Department of Administration's
FA' 1998-99 budget for the Controller, the Public
Administrator/Public Guardian and MUNI.
BOARD OF SUPERVISORS
BUDGET ANALYST
25
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
An additional $91,400 is being requested as part of
this release of reserve for use by the Assessor's
Office in relocating within 875 Stevenson Street.
These funds were recently appropriated by the
Board of Supervisors under a separate PUC
supplemental (File 99-0245), but reserved by the
Finance and Labor Committee. Attachment 3,
provided by the Real Estate Department, identifies
the cost breakdown of the $91,400 for the
Assessor's Office. Although the Assessor's Office is
a General Fund department, the proposed source of
funding would be from the PUC, instead of the
General Fund because, according to Mr. Ben
Rosenfield of the Mayor's Office, the Assessor
would not be required to move, except for the fact
that PUC is requesting the use of the entire third
floor at 875 Stevenson Street where the Assessor is
currently located.
In addition to this subject request of $464,880 plus
$246,435 of General Fund FY 1998-99
departmental savings, as shown in Attachment 2,
the Department of Administrative Services
estimates an additional cost of $616,709 for the
furnishings, moving expenses, telecommunications,
public improvements, design, project management
and indirect costs and fees. Attachment 4, provided
by Mr. Nelson identifies the funding sources for
this additional $616,709.
Therefore, the actual total estimated costs for the
General Fund portion of the renovations and
related furniture and other costs to 875 Stevenson
Street is $1,328,024 ($464,880 plus $246,435 plus
$616,709). The Budget Analyst notes that this
General Fund total cost of $1,328,024 is in addition
to the $1,212,310 recently approved and released
by the Board of Supervisors for the Public Utilities
Commission (PUC) to renovate space at 875
Stevenson Street. The subject release of $556,280
includes $91,400 for the General Fund Assessor's
costs related to 875 Stevenson Street, that will be
paid for from the previously approved PUC funding
sources.
BOARD OF SUPERVISORS
BUDGET ANALYST
26
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Comments: 1. Mr. Rosenfield reports tbat the $146,435 of
PPSD department savings indicated on Attachment
2 are a result of approximately $106,435 of salary
savings and approximately $40,000 from an old
capital account which is being closed out in the
Controller's Office for PPSD. In addition, the
$100,000 of PAPG department savings represents
approximately $75,000 from salary savings and
$25,000 from operational savings, such as material
and supplies accounts. The Budget Analyst notes
that these total General Fund savings of $246,435,
as reflected in Attachment 2, which are being used
as a funding source for the subject renovations
would otherwise be closed out to the City's General
Fund, if such funds were not used for the proposed
renovations to 875 Stevenson Street.
2. Attachment 4, provided by Mr. Nelson indicates
the source of funds to be used to finance the
proposed additional $616,709, which is not the
subject of this request, for furniture, moving
expenses, telecommunications, design, public
improvements, project management, indirect costs
and fees. Mr. Ed Harrington of the Controller's
Office reports that these previously appropriated
funds of $616,709, for other capital and childcare
subsidy purposes, do not have to be reappropriated
by the Board of Supervisors to be used by the
Department of Administrative Services for the
renovations, furniture and related expenses for 875
Stevenson Street because these funds are
considered a surplus transfer from the Department
of Administrative Services. The Budget Analyst
notes that if this $616,709 of previously
appropriated General Fund revenues were not used
for the 875 Stevenson Street project, such funds
would otherwise be closed out to the City's General
Fund and available for any other General Fund
purpose.
3. Mr. Legnitto reports that Komourous-Towey
Architects (KTA) will be the architect to provide the
design services, who was selected by the
administrator of the Mart, the landlord of 875
Stevenson Street. Furthermore, Mr. Legnitto
BOARD OF SUPERVISORS
BUDGET ANALYST
27
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
reports that the noted project management fees
would be paid to the Mart, the landlord of 875
Stevenson Street, to oversee and manage the
improvements for the leased space. According to
Mr. Legnitto, any discrepancies in the percentage
of design services or project management fees for
each department is because these are estimates of
the level of design and project management
sendees needed. Mr. Legnitto reports that the City
Architect and Real Estate will monitor the actual
expenditures and each department will only be
charged for the actual amount of design time spent
by the architect and project management
responsibilities assumed by the Mart.
4. Mr. Legnitto notes that prior to the City
occupying the 875 Stevenson Street facility in early
1995, the City spent approximately $5,280,000 to
renovate and upgrade four floors of this building, or
an amortized cost over the four-year period that
these facilities were occupied of approximately
$1,320,000 per year. Mr. Legnitto reports that the
Department of Technology and Information
Services (DTIS) moved in approximately a year
later in 1996, incurring additional renovation costs
of approximately $1,290,000, for a total renovation
cost to the 875 Stevenson Street facility of
$6,570,000. However, Mr. Legnitto notes that the
lessor of 875 Stevenson Street provided a credit to
the City of approximately a total of $2,000,000
against the total cost of tenant improvements
incurred by the City, such that the City only
incurred expenses of approximately $4,570,000
($6,570,000 total less $2,000,000 credit) for such
tenant improvements. Nevertheless, the initial
renovation cost of $5,280,000 includes
approximately $1,974,016 to renovate the same
proposed space, which these three General Fund
departments are now proposing to expend an
additional $1,328,024 plus $91,400 for the
Assessor, for a total of $1,419,424 to further
renovate and upgrade the same space. In addition,
the Budget Analyst notes that on May 3, 1999, the
Board of Supervisors approved $1,212,310, not
including the subject $91,400 placed on reserve for
BOARD OF SUPERVISORS
BUDGET ANALYST
28
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
the Assessor's Office, for the PUC to renovate
leased space at 875 Stevenson Street. Thus, with
the subject request, a total of $9,201,734
($5,280,000 initial expenditure plus $1,290,000 for
DTIS renovations plus $1,212,310 for PUC
renovations plus $1,419,424 for the proposed
expenditures) would have been spent since
approximately 1994 for renovations and
furnishings for the leased space at 875 Stevenson
Street, of which $7,201,734 was paid for by the City
and approximately $2,000,000 was provided as a
credit by the Mart.
5. According to Mr. Legnitto, the reasons these
General Fund City departments need to spend
approximately $1,419,424 to renovate and furnish
this space after approximately $1,974,016 was
spent on this same space only approximately four
years ago is because (1) the original $1,974,016
reflected only minimal tenant improvements to the
space, (2) much of the original budgeted
improvements only had a useful life of three years,
(3) the Americans With Disability (ADA) and other
building code requirements have changed and (4)
whenever one City department is replaced by
another City department, some renovations are
always required. Mr. Legnitto notes that in
accordance with the Finance and Labor
Committee's response to the PUC's recently
approved supplemental appropriation for 875
Stevenson Street, the proposed request by the
General Fund departments does not include
additional new carpeting, but rather would only
clean, patch and replace small portions of carpeting
and provide vinyl flooring at an estimated total cost
of $24,952.
6. If the proposed supplemental appropriation is
approved, the value of the construction costs
($753,314), public improvements ($20,764), design
fees ($62,393), project management ($46,816),
indirect costs, reserves and fees ($149,401) and
most of the telecommunications ($150,962) costs,
totaling up to $1,183,650 (including the Assessor
costs), as identified in Attachments 2 and 3, would
BOARD OF SUPERVISORS
BUDGET ANALYST
29
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
be lost if tbe City vacates the 875 Stevenson
building in 2002, at an amortized cost of $394,550
per year for these renovations, over a three-year
period. According to Mr. Legnitto, it is likely,
although he can make no assurances, that these
four General Fund City departments will remain in
the 875 Stevenson Street facility for approximately
five years, which would reduce the amortized cost
of the proposed renovations to $236,730 per year.
7. According to Mr. Legnitto, since the proposed
lease was renegotiated in 1996, when lease rates
were less expensive, the existing proposed lease
rate of $1.33 per square foot per month payable by
the PUC represents less than the current fair
market value for such a building. Mr. DeLucchi
estimates that the fair market value rate for a
comparable lease is approximately $1.75 per square
foot per month at this time, or approximately $.42
per square foot per month more than the rate at
875 Stevenson Street. Mr. DeLucchi notes that
fully servicing the 875 Stevenson Street lease,
which would include providing utility, security and
janitorial costs, increases the 875 Stevenson facility'
costs to $1.78 per square foot per month, and that
comparable servicing costs would be added to other
market rate leases.
8. Attachment 5 identifies the furniture costs of
$166,580 broken down by the three departments of
PPSD, PAPG and MUNI. An additional $30,520, as
identified in Attachment 3, is estimated for
furnishings for the Assessor's Office, for a total
General Fund furniture cost of $197,100 for 875
Stevenson Street. When queried by the Budget
Analyst regarding the need for such additional
furnishings, Mr. Legnitto reports that all of the
purchases of equipment will be refurbished
workstations, that can be easily moved when these
four General Fund departments are relocated from
this leased space in future years. The Budget
Analyst estimates that the average cost for these
refurbished workstations is approximately $2,700
per employee. In comparison, Mr. Legnitto reports
BOARD OF SUPERVISORS
BUDGET ANALYST
30
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
that the average cost for the new workstations
provided to employees in City Hall was $5,000.
The Budget Analyst however notes that when City
employees moved back to City Hall in January of
1999, a total of approximately $5 million in various
t\~pes of furniture and equipment was provided for
City employees. Many of these City employees,
including employees from the Treasurer/ax
Collector's Office, Recorder/ Assessor's Office,
Controller's Office, etc. were previously located at
875 Stevenson Street. It should be noted that these
employees' furnishings were left behind at 875
Stevenson Street.
9. In response, Mr. Legnitto notes that MUNI staff
will be reusing the furniture left at 875 Stevenson
Street from the Treasurer/Tax Collector's Office
and, as shown in Attachment 5 will spend S15.290
to provide electrification for these workstations.
Mr. Legnitto reports that the Controller's
Personnel and Payroll Sen-ices Division (PPSD)
will leave their existing furniture behind at 160
South Van Ness for use by the Department of
Human Services, which will be moving into their
vacated space. PPSD will then reuse the
Controller's furnishings left at 875 Stevenson
Street, together with rebuilding and purchasing
$36,835 of furnishings. The Assessor will be
reusing Assessor and Recorder furnishings left at
875 Stevenson, together with electrification and
related costs of $30,520. The Public
Administrator/Guardian will primarily be
purchasing refurbished, electrified workstations at
a cost of $114,455, and will not be reusing their
own or other department's furnishings.
10. A total of $464,880 of General Fund revenues
were placed on reserve by the Board of Supervisors
in the FY 1998-99 budget of the Department of
Real Estate to finance the costs of renovations and
furnishings at 875 Stevenson Street for these four
General Fund departments. However, as noted
above, the Department is now proposing to spend
$1,419,424 for 875 Stevenson Street renovations
BOARD OF SUPERVISORS
BUDGET ANALYST
31
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
and furnishings for these four General Fund
departments, which represents an increase of
$954,544 or 205 percent.
11. The Budget Analyst also notes that, according
to Mr. Tony DeLucchi of the Real Estate
Department, approximately 66,500 square feet of
the total approximately 150,000 net rentable
square feet at the 875 Stevenson Street facility is
currently vacant. At a lease cost of $1.33 per square
foot per month, excluding utilities, security and
janitorial services, the City is currently spending
approximately $88,445 per month for this vacant
space. The Budget Anaryst notes that City
employees vacated the 875 Stevenson Street
facility in December of 1998 and January of 1999
and that it is anticipated that the renovations
under this subject request and the previously
approved PUC request would not be completed and
these City departments would not be able to
relocate into this space until approximately the end
of Summer or early Fall of 1999, leaving this space
vacant for at least eight months, at an approximate
cost of at least $707,560 to the City.
12. In summary, the Budget Analyst raises the
following concerns: (1) an increase from a current
total of 38,312 square feet of office space to 42,955
proposed square feet, an increase of approximately
4,643 square feet of office space, or 12.1 percent
overall; (2) an overall increase from $591,381 to
$687,280 per year in rent, which is a General Fund
annual increase of $95,899, or 16.2 percent; (3)
including the $91,400 for the Assessor's Office, the
City is proposing to spend an additional $1,419,424
for these General Fund renovations at 875
Stevenson Street, although the City initially placed
on reserve $464,880 in the FY 1998-99 budget for
this purpose, an increase of $954,544 or 205
percent; (4) as a result, $246,435 of FY 1998-99
salary, capital project and operational savings from
the Controller's Office and the Public
Administrator/Guardian's Office will be used for
these renovations and related costs at 875
Stevenson Street, which would otherwise be closed
BOARD OF SUPERVISORS
BUDGET ANALYST
32
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
out to the City's General Fund; (5) an additional
$616,709 of prior year appropriations, as shown in
Attachment 4, will also be used for the proposed
renovations and related costs at 875 Stevenson
Street, which would otherwise be closed out to the
City's General Fund; (6) with the subject request, a
total of $9,201,734 ($5,280,000 initial expenditures
plus $1,290,000 for DTIS renovations plus
$1,212,310 for PUC renovations plus $1,419,424 for
the proposed expenditures) will be spent since
approximately 1994 for renovations and
furnishings for this leased space at 875 Stevenson
Street, with $2 million of these costs provided as a
credit by the Mart; (7) the annual amortized costs
of the proposed renovations and related expenses at
this leased facility over a three-year period would
be $394,550 per year and over a five-year period
would be approximately $236,730 per year; (8)
although the departments will be reusing various
furnishings left at 875 Stevenson Street by those
City employees who moved to City Hall, a total of
$197,100 is proposed to be spent for additional
furnishings; and (9) the City has an ongoing lease
to occupy the current vacant space at 875
Stevenson Street and is therefore paying rent on
this vacant space at a rate of $88,445 per month,
which will result in City costs of at least $707,560
for the eight months that this space is vacant, from
January through August of 1999, when these
departments are anticipated to move into 875
Stevenson Street.
Recommendation: Approval of the proposed request for release of
reserved funds is a policy matter for the Board of
Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
33
-n. u uen_iiLUtil.l i_ J.
875 Stevenson Street Renovation
ATTACHMENT IX, BEFORE & AFTER SPACE
Rentable Area
Before (RSF) Location
Rentable Area
Proposed At 575 Stevenson
ASSESSOR
PPSD
PAPG
MUNI
N/A
16,185 Previously on Floor 3 S.<24 Floor 1
15,000 160 South Van Ness Avenue 12,543 Floor 2
9,521 25 Van Nsss Avenue 13,223 Root 2
Various
425 Mason
Turk Street
West Portal Trailer
New Hires
7,765 Floor 2
34
7
575 Stevenson Street
Renovation Budget Summary
Corwtnj=tjon
Department Savings
PPSO PAPG MUNI TOTAL
1B8.4D4 293.158 229,753 711,315
(146.435) (100,000) - (246.425)
Net (Use of Reserve)
41.959
193.156
229,753
464,860
Furniture
Moving
Telecom
Public Improvements
Design
Project Management
Indirect Costs, Reserves, & rees
ADM Budget Savings
166. 5S3
40,500
143. 2S8
20,764
59.455
43.043
143.079
(616.709)
Project Bottom Line
35
Attachment 3
875 Stevenson Street Renovation
ATTACHMENT VII , ASSESSOR'S COSTS
Construction
Architectural & Structural
Mechanical
Electrical
Genera! Conaitions
incfirects & Reserves
Fees
Furniture
S 10,200
5 4.495
S 15,800
S 5,182
S 2,428
S 3.894
SUBTOTAL $41,999
530,520
Move (Physical)
S 4,500
Telecom
Design
Project Management
$
7,574
$
2,933
$
3,773
5 91,404
36
TOTAL P.B2
Date: 5/5/99
Sender: Steve Nelson
To: Debra Newman
Priority: Normal
Subject: 875 Stevenson Street
The following components make up the S600K that is included in the
budget for the non-construction costs at 675 Stevenson Street.
$175,000 Child Care subsidy funds not required in the current fiscal
year
$164,574 Excess funds not needed for the Facilities Condition
Monitoring Prcjet, a capital project within Adrr.ir. Services
$188,420 CAO Cap Building Project. This is an old project that was
used to fund the costs of boiler retrofits at the Kail of
Justice, Laguna honda Hospital and SF General Hospital some
years ago. The project has long since been completed and
these funds are not needed for the origiar.l purpose.
$ 88,715 Urban Design Phase 4. This is a very cid project that we
believe was part of the design funds appropriated fir the
Embarcadero Roadway Project. Deisgn of the roadway has
long since been completed and is in construction, s: these
funds are no lonaer needed.
$616,709 TOTAL
37
A.r I. a earner., l. ->
75 Stevenson Street Renovation
ATTACHMENT II , FURNITURE
PPSD PAPG MUNI TOTAL
Infect S 32,335 $ 99,880 $ 132,215
Usassemble/ Reassemble
abor & Misc. Parts $ 4,500 $ 4,500
ilectrification $ 14,575 $ 15,290. $ 29,855
TOTAL $ 35,835 $ 114,455 $ 15,290 $ 155,530
38
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Item 6 - File 99-0853
Department:
Item:
Location:
Purpose of
License Agreement:
Lessor:
Real Estate Department (RED)
Department of Telecommunications and Information
Sendees (DTIS)
Resolution authorizing a retroactive renewal of a Roof
Equipment License Agreement at 555 California Street for
DTIS.
555 California Street
To provide space for seven radio antennas, transmitters
and all associated wiring and equipment, including
electrical service, for public safety radio communications for
the Police, Fire, Public Health, and Sheriffs Departments
in addition to a separate local government radio system
used by the Department of Public Works, Animal Control,
Health Centers, and the Fire Department Auxiliary Water
Supply System, among others.
555 California Street Partners
Lessee:
DTIS
No. of Sq. Ft.:
Cost Per Month:
Annual Cost:
Increase Over Prior
License Agreement:
Description:
64 square feet
FY 1998-1999: $2,000
FY 1999-2001: $5,000
FY 1998-1999: $24,000
FY 1999-2001: $60,000
FY 1998-1999: no increase
FY 1999-2001: $36,000 annually (150 percent)
The subject resolution would authorize the renewal of a
Roof Equipment License Agreement between DTIS and 555
California Street Partners, owners of the office building
located at 555 California Street (known as the Bank of
America Building). The leased area would be used to
provide space for seven radio antennas, transmitters and
BOARD OF SUPERVISORS
BUDGET ANALYST
39
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Term of Lease:
Source of Funds:
Comments:
all associated wiring and equipment, including electrical
service, for public safety radio communications for the
Police, Fire, Public Health, and Sheriffs Departments in
addition to a separate local government radio system used
by the Department of Pubhc Works, Animal Control,
Health Centers, and the Fire Department Auxiliary Water
Supply System, among others. Mr. Larry Garde of DTIS
reports that DTIS has occupied the subject space under a
license agreement since 1987.
Three years, retroactive to July 1, 1998 to June 30, 2001.
For FY 1998-99, DTIS would fund the license agreement
with monies previously appropriated in its FY 1998-99
budget. For FY 1999-2000 and FY 2000-2001, DTIS would
fund the lease from DTIS's annual operating budget.
1. According to Mr. Larry Jacobson of the RED, this
proposed resolution, which requires a retroactive clause to
July 1, 1998, was not submitted to the Board of Supervisors
at an earlier date because (1) an initial proposal was not
received from 555 Cahfornia Street Partners until August
1998, and (2) the DRE entered into a lengthy negotiation
with 555 California Streets Partners in an attempt to
minimize the proposed rate increase for the subject site.
2. On May 10, 1999, the Board of Supervisors approved a
resolution (File 99-0762) authorizing retroactive renewal of
a Roof Equipment License Agreement between the
Municipal Railway (MUNI) and 555 California Street
Partners. The monthly rental rate under the MUNI Roof
Equipment License Agreement at 555 California Street, the
same location as the subject agreement, is S4.000 to be paid
by MUNI to 555 Cahfornia Street Partners over the three
year term of the agreement.
Under the subject agreement, the new monthly rate to be
paid by DTIS to 555 Cahfornia Street Partners would be
S2.000 in FY* 1998-99 which is the same monthly rate as
under the previous DTIS Roof Equipment License
Agreement which expired on June 30. 1998. In FY 1999-
2000 and FY 2000-01 the new monthly rate payable by
DTIS will be $5,000 which is S3. 000 or 150 percent more
than the S2.000 monthly rate under the previous
agreement. Over the three year term of the agreement, a
BOARD OF SUPERVISORS
BUDGET ANALYST
40
Memo to Finance and Labor Committee
Ma}' 19, 1999 Finance and Labor Committee Meeting
total of $144,000 would be paid by DTIS to 555 California
Street Partners at an average rate of $4,000 per month,
which is the same rate to be paid by MUNI under the
similar license agreement recently approved by the Board
of Supervisors.
3. Mr. Jacobson states that the proposed average monthly
rate of $4,000 over the three year term of the subject Roof
Equipment License Agreement (see Comment No. 2 above)
represents fair market value due to the rapidly growing
demand for similar space for both public and private sector
radio operations. Mr. Jacobson reports that the City
occupies similar rooftop space at One Market Plaza at a
monthly rate of $4,000, the same rate as provided for in the
subject license agreement.
4. According to Mr. Garde, the office building located at
555 California is presently the only available building tall
enough to allow the successful operation of the current
radio system in the downtown area. Mr. Garde explains
that no other available site would provide adequate
clearance from physical obstructions (i.e., other buildings)
that would hamper the necessary radio communications.
5. The subject license agreement has an ending date of
June 30, 2001. According to Mr. Garde, it is anticipated
that within the next three years all of the radio
communications services provided for under the subject
agreement will be moved to One Market Plaza and the
subject space at 555 California Street will not be required.
Therefore, the subject license agreement contains a
termination provision with 180 days prior written notice to
the lessor. Mr. Garde advises that although public safety
radio communications will be transitioning into the new
Citywide 800 MHz Radio System in February 2000,
currently being installed at One Market Plaza, the existing
public safety radio system and equipment must remain at
555 California for a period of three to four more months to
accommodate any public safety units who may not have
completely transitioned over to the new system. In
addition. Mr. Garde reports that the separate local
government radio system, used by the Department of
Public Works, Animal Control, Health Centers, and the
Fire Department Auxiliary Water Supply System, among
others, which is also installed at 555 California Street, can
BOARD OF SUPERVISORS
BUDGET ANALYST
41
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
be co-located with the new site at One Market Plaza.
However, according to Mr. Garde, such a move would most
likely take two years to plan, approve, and complete.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
42
Memo to Finance and Labor Committee
May 19, 1999, Finance and Labor Committee Meeting
Item 7 - File 99-0856
Department:
Item:
Location:
Purpose of Lease:
Department of Human Services (DHS)
Department of Real Estate (DRE)
Resolution authorizing a new lease of real property of the
entire building at 160 South Van Ness Avenue.
160 South Van Ness Avenue
To provide leased space for the Department of Human
Services (DHS), Investigations Division which is currently
located in two separate leased buildings at 1235 Mission
Street and 1650 Mission Street. The proposed lease
would relocate 70 existing Investigations Division
employees from 1235 Mission Street and 1650 Mission
Street to 160 South Van Ness Avenue in order to
accommodate additional program needs for DHS's Adult
Services Division, which is also located at both 1235
Mission Street and 1650 Mission Street.
Lessor:
Lessee:
No. of Sq. Ft. and
Rent Per Month:
Stuart B. and Myrna J. Aronoff Revocable Trust and
Trudy Cohn
The City and County of San Francisco
The proposed space at 160 South Van Ness Avenue
consists of approximately 15,000 square feet of office and
common area space at $1.67 per square foot per month for
a total of $25,000 per month for the first two 3 r ears with
increases of approximately 2 percent rate in subsequent
vears, as follows:
Year
Three
Four
Five
Six
Seven
Eight
Nine
Ten
Rate per
Square Foot
per Month
$1.70
$1.75
$1.79
$1.83
$1.88
$1.93
$1.98
$2.03
Rate per
Month
$25,625
$26,266
$26,922
$27,595
$28,285
$28,992
$29,717
$30,460
BOARD OF SUPERVISORS
BUDGET ANALYST
43
Memo to Finance and Labor Committee
May 19, 1999, Finance and Labor Committee Meeting
Annual Cost:
Utilities and Janitor
Provided bv Lessor:
Term of Lease:
Ri^ht of Renewal:
$300,000 for the first two years, $307,500 for the third
year, $315,192 for the fourth year, $323,064 for the fifth
year, $331,140 for the sixth year, $339,420 for the
seventh year, $347,904 for the eighth year, $356,604 for
the ninth year and $365,520 for the tenth year.
All costs for utilities and janitorial services would be the
responsibility of the City.
The proposed lease would commence upon approval of the
Board of Supervisors and termination of the existing lease
at 160 South Van Ness Avenue and would expire ten
years thereafter. According to Ms. Claudine Yenegas of
the Department of Real Estate (DRE), the entire building
at 160 South Van Ness is currently occupied by the
Controllers Payroll and Personnel Services Division
(PPSD). The Controller's lease expires on June 30, 1999.
PPSD is moving to 875 Stevenson Street (see Item 5, File
No. 99-0809 of this report to the Finance and Labor
Committee). However, according to Ms. Yenegas. PPSD
will continue to lease 160 South Yan Ness on a month to
month basis until approximately August 30, 1999, at
which time, PPSD intends to vacate 160 South Yan Ness
Avenue and move to the 875 Stevenson Street facility.
The City would have the option to extend the lease for an
additional five-year period at 95 percent of fair market
rent.
Source of Funds:
Description:
37% Federal Grant Funds, 27% State Grant Funds and
36% General Fund which will be included in DHS's 1999-
2000 budget.
Ms. Rose Chow of DHS advises that the proposed lease
would provide space for the DHS Investigations Division
to relocate 70 existing employees, including 39 employees
from 1235 Mission Street and 31 employees from 1650
Mission Street to 160 South Yan Ness Avenue.
The following Investigations Division units, which are
currently located at 1235 Mission Street and staffed by 39
employees to be relocated, would be moved to 160 South
Yan Ness Avenue:
BOARD OF SUPERVISORS
BUDGET ANALYST
44
Memo to Finance and Labor Committee
May 19, 1999, Finance and Labor Committee Meeting
• Appeals Unit
• Collection Unit
• Fraud Early Detection Unit
In addition, the following Investigations Division units,
which are currently located at 1650 Mission Street and
staffed by 31 employees to be relocated, would be moved
to 160 South Van Ness Avenue.
• Quality Control Unit
• Warrant Investigations Unit
• Overpayment Unit
Ms. Chow states that the proposed lease would allow DHS
to relocate 70 Investigations Division employees and
related units from 1235 Mission Street and 1650 Mission
Street to the proposed space at 160 South Van Ness
Avenue in order to accommodate additional program
needs for DHS's Adult Sendees Division, which is also
located at both 1235 Mission Street and 1650 Mission
Street. The Attachment, provided by Ms. Chow, explains
(1) why the proposed additional space at 160 South Van
Ness Avenue is necessary; (2) the number of DHS
Investigations Division employees and related units
which would be moved from 1235 Mission Street and 1650
Mission Street to 160 South Van Ness Avenue; and (3)
who will occupy the space vacated at 1235 Mission Street
and 1650 Mission Street.
Comments: 1. According to Ms. Chow, the 39 Investigations Division
employees and related units, which are currently located
at 1235 Mission Street, occupy approximately 5.000
square feet at such site, or an average of approximately
128 square feet per employee. The 31 Investigations
Division employees and related units, which are currently
located at 1650 Mission Street, occupy approximately
4,000 square feet at such site, or an average of
approximately 129 square feet per employee. Ms. Chow
advises that together these 70 employees would occupy
approximately 11,470 square feet at 160 South Van Ness
Avenue, or an average of approximately 164 square feet
per employee. The remaining 3,530 square feet of the
total 15,000 square feet would be occupied by three
BOARD OF SUPERVISORS
BUDGET ANALYST
A5
Memo to Finance and Labor Committee
May 19, 1999, Finance and Labor Committee Meeting
conference rooms, a kitchen, a training room, a loading
dock and a reception area.
2. According to Ms. Venegas, the proposed rent
represents fair market value.
3. Ms. Venegas advises that the Lessor will pay for
leasehold improvements at an estimated cost of $250,000.
Such improvements include the installation of an
elevator, carpeting, painting and American with
Disabilities Act improvements. The leasehold
improvements are expected to be completed within
approximately 60 days after approval of the proposed
resolution, according to Ms. Venegas.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
46
ity and County of San Francisco
Department of Human Services
Will Lightbourne
Executive Director
Deputy Directors
Bill Bettencourt
Sally Kipper
Jim Buick
May 12, 1999
To: Gabriel Cabrera
Budget Analyst
From: Rose Chow
Department of Human Services
Subject: 1 60 South Van Ness
The Department of Human Services wish to lease 1 5,000 square foot of space to six units of our
Investigation Division. These units are currently at 1235 Mission Street where our PAES program is
located, and 1 650 Mission Street where our Adult Services Program resides. Both the PAES and
Adult Services programs are expanding and require more space for their growth in each of their
location, making it necessary for us to relocate other staff to accommodate this. It made sense to
consolidate the Investigations Division in one location.
At 1235 Mission Street, we will move 39 Investigations staff out freeing up approximately 5,000
square feet. This will allow us to build the classroom component of the PAES program, which
provide seminars that motivate clients to want to work and provide skills for job search preparation.
The buildout will include four 500-sf classrooms, about seven 1 00-sf offices to be used for
supervisors, interviewing and storage. Also, enough floor space to accommodate nine trainers.
At 1650 Mission, we will move 31 Investigations staff out, freeing up approximately 4,000 square
feet. This space will be filled with 36 new Adult Protective Services staff, which was mandated by
the State to provide a program of services to maintain the safety of elders. These workers have not
been hired yet.
There is approximately 1 5,000 square feet of space at 1 60 South Van Ness occupied by about 75
Controller's Staff. We counted 75 workstations in their space. The 1 5,000 sf includes a large
kitchen, training room, three conference rooms, loading dock area, reception/waiting space and a
large file storage area with a rolling filing track system. Our Investigations Staff currently occupy
about 9,000 square feet of space but does not include kitchen, conference, interviewing, training or
reception areas.
I hope this is sufficient to justify our space needs.
( 5) 557-5000
P.O. Box 7988
47
San Francisco, California 94120
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Item 8 - File 99-0902
Department:
Item:
Parking Authority
Department of Real Estate (DRE)
Resolution approving the second modification of an
existing lease of real property at the Moscone Center
Garage.
Location:
Purpose of Lease:
Lessor:
Lessee:
Parcel No. 2 at Moscone Center Garage located at 257
Third Street between Folsom and Howard Streets.
Under the proposed resolution, the existing lease between
the Parking Authority and the T.A. Fruits and
Vegetables, a private firm, for its operation of the
Moscone Pizzadelli, a restaurant, at Moscone Center
Garage would be modified to (1) extend the term of the
lease, (2) increase the space provided under the lease and
(3) increase the minimum rent for the subject space.
Parking Authority
T.A. Fruits and Vegetables
No. of Sq. Ft. and
Rent Per Month:
Annual Rent payable
By T.A. Fruits and
Vegetables to the
Parking Authority:
1,253 square feet at $3,698 per month (based on 978
square feet of interior space at $3.50 per square foot per
month and 275 square feet of exterior space at $1.00 per
square foot per month) or 6 percent of gross receipts,
whichever is greater.
T.A. Fruits and Vegetables will pay the Parking
Authority either $44,376 or 6 percent of gross receipts,
whichever is greater.
Percentage Increase
Prior Lease:
The existing lease for Parcel No. 2 in the Moscone Center
Garage located at 257 Third Street between Folsom and
Howard Streets is with T.A Fruits and Vegetables for its
operation of the Moscone Pizzadelli, a restaurant. The
space provided under the existing lease consists of
approximately 978 square feet of interior space. Under
BOARD OF SUPERVISORS
BUDGET ANALYST
48
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Utilities and Janitor
Provided by Lessor:
Term of Lease:
the existing lease, the annual rent is $32,628 or 6 percent
of gross receipts, whichever is greater. The proposed
lease modification would result in the addition of exterior
space for the T.A Fruits and Vegetables of 275 square feet
or an increase of approximately 28 percent, from 978
square feet to 1,253 square feet. Under the proposed
lease modification, the annual rent is either $44,376 or 6
percent of gross receipts, whichever is greater. Therefore,
the minimum annual rent of $44,376 under the proposed
lease modification is $11,748 or approximately 36 percent
higher than the minimum annual rent of $32,628 under
the existing lease with T.A. Fruits and Vegetables.
All costs for utilities and janitorial services would be the
responsibility of T.A. Fruits and Vegetables.
The existing lease, which was for an initial term of five
years and thereafter extended for two five-year periods,
expires on February 29, 2000. If the proposed resolution
is approved, term of the existing lease would be extended
for the five-year period of July 1, 1999 through June 30,
2004.
Riffht of Renewal:
Description:
T.A Fruits and Vegetables would have the option to
extend the lease for an additional five-year period at the
then prevailing market rate as determined by the DRE.
In 1984, the Board of Supervisors approved a resolution
authorizing the Parking Authority to lease Parcel No. 2,
consisting of 948 square feet, in the Moscone Garage
Center to Paul Hui, Paul Tong and David Fabian for their
operation of a restaurant at such site (Resolution No. 719-
84). The Board of Supervisors subsequently authorized a
First Modification to the lease with Paul Hui. Paul Tong
and David Fabian to change the effective date of the lease
from December 1. 1984 to March 1, 1985 (Resolution No.
428-85). Moreover, in 1998. after receiving the necessary-
approval from the Parking Authority, the lessee assigned
the lease to T.A. Fruits and Vegetables, which became
effective on January 1, 1990. The lease contains a
provision that states the lessee can lease or sublet the
subject space with only the prior written approval of the
lessor. Since this provision is contained in the initial
lease, which was previously approved by the Board of
BOARD OF SUPERVISORS
BUDGET ANALYST
49
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Comments:
Supervisors, tbe subject assignment of tbe lease to T.A.
Fruits and Vegetables did not require Board of
Supervisors approval, according to Mr. Gerald Fcomani of
tbe Department of Real Estate (DRE).
Approval of the proposed resolution would authorize the
Parking Authority to execute a Second Modification to the
existing lease with T.A. Fruits and Vegetables for the
addition of 275 square feet of exterior space in the
Moscone Garage Center. In addition, the term of the
existing lease would be extended for the five-year period
of July 1, 1999 through June 30, 2004, and the minimum
rent payable by TA. Fruits and Vegetables to the Parking
Authority would be increased by approximately 36
percent.
Mr. Romani states that the initial leased premises
consisting of 978 square feet would continue to be used by
T.A. Fruits and Vegetables for its operation of the
Moscone Pizzadelli restaurant. Mr. Romani explains that
T.A. Fruits and Vegetables plans to use the proposed
additional 275 square feet to create an outdoor eating
area for the patrons of the Moscone Pizzadelli restaurant.
1. According to Mr. Romani, the proposed rent represents
fair market value.
2. Mr. Romani advises that if the proposed resolution is
approved, the lessee will pay for leasehold improvements
at an estimated cost of 525,000. Such improvements
include raising the existing dropped ceiling, carpeting,
painting, lighting, and purchasing new furniture and
kitchen equipment. These leasehold improvements are
expected to be completed within approximately 90 days
after approval of the proposed resolution, according to Mr.
R.omani.
Recommendation:
Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
50
Memo to Finance and Labor Committee
May 19, 1999, Finance and Labor Committee Meeting
Item 9 - File 99-0908
Department:
Item:
Location:
Purpose of Lease:
Department of Parking and Traffic (DPT)
Department of Real Estate (DRE)
Resolution authorizing the renewal of an existing lease of
real property at 1975-1999 Bryant Street.
1975-1999 Bryant Street at the northeast corner of 18 th
Street.
To provide space for the Department of Parking and
Traffic (DPT), Traffic Sign Division in the facility located
at 1975-1999 Brvant Street.
Lessor:
Lessee:
No. of Sq. Ft. and
Rent Per Month:
Annual Rent:
Percentage Increase
Prior Lease:
Utilities and Janitor
Provided bv Lessor:
Jack M. Keeney and Lavonne Keeney
Citv and Countv of San Francisco
21,162 square feet, including 16,112 square feet of
interior space and 5,050 square feet of enclosed yard at
$13,770 per month for the first year (based on
approximately $0.65 per square foot per month) with an
annual increase of 3 percent each subsequent year.
$165,240 for the first year with an annual increase of 3
percent each subsequent year.
The existing 6ve-year lease for the space at 1975-1999
Bryant Street provides a total of 21,162 square feet at
approximately $0.40 per square foot per month, or $8,500
per month and $102,000 annually. The proposed lease
would result in the same square footage for the Traffic
Signal Division of 26,212 square feet and an increase in
the cost to the City for annual rent of $63,240 for the first
year or approximately 62 percent, from $102,000 to
$165,240. Under the proposed lease, the annual rent
would increase by 3 percent each subsequent year.
All cost for utilities and janitorial services would continue
to be the responsibility of the City.
BOARD OF SUPERVISORS
BUDGET ANALYST
51
Memo to Finance and Labor Committee
May 19, 1999, Finance and Labor Committee Meeting
Term of Lease:
Right of Renewal:
Source of Funds:
Description:
Comments:
Recommendation:
The existing lease expires June 30, 1999. The proposed
lease would have a term of ten years with an estimated
commencement date of July 1, 1999 and would expire ten
years thereafter.
None.
According to Ms. Julia Dawson of DPT, the proposed rent
will be included in DPT s annual budget commencing in
FY 1999-2000.
As noted above, the proposed lease is a ten year renewal
of an existing lease between the City and County of San
Francisco and Jack M. Keeney and Lavonne Keeney for
the facility at 1975-1999 Bryant Street. The Department
of Parking and Traffic, Traffic Sign Division, which has
occupied the space since 1972, designs, constructs and
stores traffic signs at the site. The Traffic Sign Division
currently has a total of 29 employees, including 16
employees who work in the field and 13 employees who
work on-site at 1975-1999 Bryant Street. The 13
employees who work on-site at 1975-1999 Bryant Street
occupy 2,162 square feet of space, for an average of
approximately 166 square feet per employee. The
remaining 19.000 square feet of the total 21.162 square
feet is used by the Traffic Signal Division to construct and
store traffic signs, and house shop equipment and field
work vehicles.
1. The attached memorandum, provided by Mr. Ken
Chopping of the Department of Real Estate (DRE),
explains why the lease at 1975-1999 Bryant Street
requires a 62 percent increase in rental costs to the City.
2. According to Mr. Chopping, the proposed rent
represents fair market value.
Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
52
rn3Y-ij-iggg 16 = 20
CCSF REAL ESTRTE DEPT
fictacnment
City and County of San Francisco
Real Estate Department
Office of the
Director of Property
MEMORANDUM
TO: Harvey Rose
Board of Supervisors
Budget Analyst
FROM: Anthony
Director of
£E£^Q-_
BATE: May 13, 1999
SUBJECT: Sign Shop Lease at 1975-1999 Bryant Street
Gabriel Cabrera of your office requested additional information on the reason for the substantial
increase in rent for the lease renewal at 1975-1999 Bryant Street.
The present rent of $8,500 per month was negotiated five years ago, as a fixed rent for five years.
An increase in rent was expected but market rents in general, and especially for this type of space,
have increased dramatically in the past two years. This area is experiencing an upgrading of older
industrial buildings to office, multi-media studios and live/work projects which is adding to the
upward pressure on rents.
It is our opinion, after an extensive search for a less expensive replacement property, that the
negotiated rent of $13,770 per month is fair market value and that the rent increase over what was
negotiated five years ago, while substantial, is simply a reflection of current market conditions. A
further indication of market value is the fact that the Landlord listed it for lease at $18,000 per
month and immediately received a written offer at $15,000 per month from another party.
kc
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554-9890
FAX: S52-B21B
2S Van New Avanu*, Suite 400
SanFrandtca,MiQ2
53
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Item 10 - File 99-0909
Department:
Item:
Department of Human Resources (DHR)
Resolution approving the renewal of provisional
appointments through December 31, 1999 for
employees in classes for which no eligible list exists
and who have been employed in the class more
than three years, as required by San Francisco
Charter Section 10.105.
Description:
Comments:
Provisional appointments of City employees occur
when there is not an eligible list available for
appointment to permanent City positions. An
eligible list includes all persons who passed a
classification examination given by the Department
of Human Resources for the specific classification.
According to Charter Section 10.105, provisional
appointments of City employees to classified
positions, for which no eligible list exists, cannot
exceed three years, unless such appointments are
renewed with the approval of the Board of
Supervisors and upon certification by the Human
Resources Director that for reasons beyond her
control the Department has been unable to conduct
examinations for these positions. The proposed
resolution would approve an extension of
provisional appointments for 19 classifications,
affecting a total of 54 employees through December
31, 1999 located throughout the City, including at
the Airport, Controller's Office, Department of
Parking and Traffic, Department of Public Health,
Department of Public Works, Juvenile Probation
and Sheriffs Office.
1. According to Ms. Linda Marini of the
Department of Human Resources, DHR has
undertaken an expedited program to reduce the
number of long-term provisional employees in the
City by streamlining the examination process,
decentralizing examination functions into various
City departments (such as the Airport, Health
Department and Sheriff), providing more
examinations and increasing the number of eligible
lists for appointment of employees to permanent
BOARD OF SUPERVISORS
BUDGET ANALYST
54
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
positions. As a result, Ms. Marini reports that DHR
has reduced the number of long-term provisional
employees from 1,457 employees in 1996 to the
current number of 54 such employees in 1999.
2. Ms. Marini notes that this new Charter Section
10.105 provision became effective on July 1, 1996.
Therefore, the three-year maximum term for the
subject 54 provisional employees will terminate on
June 30, 1999. Ms. Marini therefore reports that if
the proposed resolution is not approved by the
Board of Supervisors, then the 54 affected
employees would need to be laid off since their
provisional appointments would have exceeded the
three-year limit.
3. According to Ms. Marini, the DHR will not be
able to provide the necessary examinations and
create eligible lists for these 54 provisional
employees to be appointed to permanent positions
prior to the June 30, 1999 deadline and is therefore
seeking this approval from the Board of
Supervisors to extend these provisional
appointments through December 31, 1999, when it
is anticipated that eligible lists will exist for
appointment to permanent positions. As shown in
the Attachment provided by Ms. Marini, all of the
examinations and eligible lists for these 54
employees are planned to be completed by October
31. 1999. Therefore, Ms. Marini reports that DHR
will not be seeking any further extensions of these
provisional appointments beyond the subject
December 31, 1999 date.
3. Ms. Marini notes that, if the proposed resolution
is not approved by the Board of Supervisors, and
these 54 provisional employees were terminated,
their budgeted positions would still remain part of
each departments' budget, and each of the affected
departments would then have to recruit and hire
new employees to fill the same budgeted positions.
The Budget Analyst therefore notes that the
proposed resolution should not affect the ongoing
cost to the City for these positions. Ms. Peg
BOARD OF SUPERVISORS
BUDGET ANALYST
55
Memo to Finance and Labor Committee
May 19, 1999 Finance and Labor Committee Meeting
Stevenson of the Controller's Office concurs with
the opinion of the Budget Anatyst's Office.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
56
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58
Memo to Finance Committee
May 19, 1999 Finance Committee Meeting
Items 11 and 12 - Files 99-0918 and File 99-0924
Department:
Item:
Description:
Public Utilities Commission (PUC)
Water Department
File 99-0918 - Ordinance approving the revised schedule
of sendee fees to be charged by the Public Utilities
Commission to retail water customers for Fiscal Year
1999-2000.
File 99-0924 - Ordinance approving the revised schedule
of rates to be charged by the Public Utilities Commission
for wholesale water service to its Suburban Resale
Customers for Fiscal Year 1999-2000.
The PUC establishes two separate water rate schedules.
One schedule is for the Water Department's retail
customers in San Francisco and its retail customers
outside the City. The other schedule is for the Water
Department's "Suburban Resale Customers". Suburban
Resale Customers are, collectively, 29 water agencies,
primarily within the Counties of San Mateo, Santa Clara
and Alameda, that purchase water at wholesale rates
from the San Francisco Water Department for resale to
their customers.
Water rate schedules for retail customers were last
amended by the PUC effective July 1, 1996 when retail
rates to the water users in San Francisco and outside the
City were increased by 7.6 percent. Suburban Resale
water rate schedules were last amended effective July 1,
1998 when such rates were decreased by 13.0 percent in
accordance with the terms of a 1984 settlement
agreement described below.
The Board of Supervisors can only approve or disapprove
water rate schedules submitted by the Public Utilities
Commission. The proposed water rate schedules cannot be
amended by the Board of Supervisors. Under Charter
Section 2.109, the Board of Supervisors may approve, or
reject, any rate, fee or similar charge to be imposed by
any department, board or commission.
Board of Supervisors
Budget Analyst
59
Memo to Finance Committee
May 19, 1999 Finance Committee Meeting
Proposition H, approved by the voters on June 2, 1998,
mandates that Water rates and Sewer Service Charge
rates are to remain at their current levels until July 1.
2006, subject to the following exceptions:
• With the concurrence of the Board of Supervisors and
the Mayor, the rate freeze would not apply to the fees
charged to customers located outside of San Francisco.
• The rate freeze could be suspended if the City declared
an emergency, as defined by the Charter.
• The fees could be increased to repay the money
borrowed by the City for improvements to the water
system approved by the voters in November 1997.
These fee increases could not exceed a total of 18
percent.
• The fees could be increased to repay money borrowed for
further improvements to the water and sewer systems
approved by the voters in the future.
The PUC is proposing no change to its current water rates
to its San Francisco and other retail customers. The PUC
is, however, proposing adjustments to the charges for the
installation of flow restricting devices for one inch or
smaller meters (an increase from S122.37 to $125) based
on labor cost increases and an increase to the returned
check charge to cover the PUC's cost. The returned check
charge is currently $15. Based on a labor cost of $15.62
and a City Treasurer charge of an additional $10, the
recommended returned check charge for FY 1999-2000 is
$25. The City Attorney has issued an opinion that such
charges, which are not related to the provision and
consumption of water, are exempt from Proposition H.
The PUC is also proposing an increase in rates charged to
its Suburban Resale Customers of 34.7 percent. This
increase is consistent with the terms of a 1984 settlement
agreement between the Suburban Resale Customers and
the City, and a related master water sales contract, which
was approved by the Board of Supervisors and resolved
litigation which had been pending since 1974.
The settlement agreement established the method by
which suburban resale rates are calculated each year.
Under that agreement, cost accounting and rate setting
are divided and based on the costs of providing water
Board of Supervisors
Budget Analyst
60
Memo to Finance Committee
May 19, 1999 Finance Committee Meeting
services to retail customers, as distinct from the
Suburban Resale Customers, who purchase water from
the San Francisco Water Department at wholesale rates.
The City sets the wholesale water rates to recover all
costs associated with providing water to the Suburban
Resale Customers, plus a rate of return on all debt funded
assets and future revenue funded assets.
The difference between Suburban Resale water service
revenues, and the cost computations made in accordance
with the settlement agreement requirements, are credited
to a "balancing account" which must be factored in to the
rate calculation for the following year. If the projected
balancing account value and projected revenue from
Suburban Resale Customers exceeds or falls short of (a)
projected annual costs, plus (b) a return on assets, for the
Suburban Resale Customers by an amount greater than
two percent of the sum of projected annual costs and a
return on assets, adjustments to the Suburban Resale
Customer rate schedules are mandated by the 1984
settlement agreement.
The projected July 1, 1999 balancing account value is
estimated to be a negative $4,332,000 and the projected
June 30, 2000 balancing account value is estimated to be
a negative $18,006,000 based on existing Suburban
Resale Customer rates. The PUC has therefore
recommended an increase in Suburban Resale Customer
rates of 34.7 percent based on the requirements of the
Settlement Agreement, in order to eliminate the projected
negative balance in the balancing account of $18,006,000
as of June 30, 2000. This rate increase of 34.7 percent
would increase projected 1999-2000 Suburban Resale
water service revenues by $18,006,000 from $51,848,000
to $69,854,000.
Board of Supervisors
Budget Analyst
61
Memo to Finance Committee
May 19, 1999 Finance Committee Meeting
The table below displays the Water Department's
projected Revenues and Expenditures for FY 1999-2000.
1999-2000 WATER DEPARTMENT PROJECTED
REVENUES AND EXPENDITURES
Beginning Operating Fund Balance $ 25,308,000
Projected Revenues
Retail Water Sales $ 63,452,000
Suburban Resale Water Sales 69,854,000
Other Revenues 14.750.000
Total Revenues 148.056.000
Total Sources 173,364,000
Projected Expenditures (Subject to appropriation approval in
the Water Department's FY 1999-2000 budget) 147.737.000
Ending Operating Fund Balance $ 25,627,000
Comments: 1. As previously noted, the PUC has proposed no water
rate increases for San Francisco water users and the
other retail customers of the Water Department. Based on
the Water Department's projected revenues and
expenditures, as can be seen from the table above, the
Water Department's current unappropriated surplus will
increase by $319,000 ($25,627,000 Ending Balance less
$25,308,000 Beginning Balance). Without the proposed
increase of 34.7 percent for Suburban Resale Customers,
the Ending Balance would decrease by $18,006,000, from
the projected $25,627,000 to $7,621,000.
2. In accordance with the revenue requirements for
Water Revenue Bonds, net revenues in each Fiscal Year
must be equal to at least 1.25 times more than the
outstanding revenue bond annual debt service due in that
fiscal year (commonly known as the required debt service
coverage ratio). Based on the PUC's recommended rate
increase of zero percent for retail customers and 34.7
percent for Suburban Resale Customers, the projected
debt sendee coverage at the end of FY 1999-2000 is 3.07
or 1.82 above the required debt service coverage ratio of
1.25. Without the proposed 34.7 percent increase, the debt
Board of Supervisors
Budget Analyst
62
Memo to Finance Committee
May 19, 1999 Finance Committee Meeting
Recommendation:
service coverage ratio would decrease significantly, from
3.07 to 2.22.
Approve the proposed ordinances.
Harvev M. Rose
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
Board of Supervisors
Budget Analyst
63
City and County of San Francisco
Meeting Minutes
Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102^689
Wednesday, May 26, 1999
10:00 AM
Regular Meeting
City Hall, Room 263
Members Present: Leland Y. Yee, Tom Ammiano.
Members Absent: Sue Bierman.
Meeting Convened
The meeting convened at 10:09 a.m.
REGULAR AGENDA
DOCUMENTS DEPT.
JUN 1 6 1999
SAN FRANCISCO
PUBLIC LIBRARY
990916 [Employee Health Cover agel
Ordinance amending Administrative Code Section 16. 157, approving Health Service System plans and rates of
contribution as adopted by the Health Service Board. (Department of Human Resources)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Supervisor Ammiano; Harvey Rose. Budget Analyst; Ann Summercamp,
Deputy Director, Health Service System; John Madden, Assistant Controller; Jean Frasier, Deputy City
Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office; Bart Duncan, Deputy City Attorney. Opposed:
Leonard Lundgren, President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann
Tobian; Nancy Gin, 2nd Vice President, CCSF Retirees Association; Tony Sacco, Retired Firemen and
Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired Firemen and Widows
Association; Robert Pardina; John LeHane, Police Association; Jean Thomas; Earl Gilman; Grady Shawn
Allison; Diane Hermann, Executive Board, Retired Employees. Neither: Jerry De Ryan, Labor Council;
David Novogrodsky, Local 21.
CONTINUED TO CALL OF THE CHAIR by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
City and County of San Francisco
Printed at 11:45 AM
Finance and Labor Committee
Meeting Minutes
May 26, 1999
990846 [Health Care Plan and Rate Increase]
Supervisors Ammiano. Bierman
Hearing to consider the escalating costs of enrolling in the health care plans.
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Supervisor Ammiano: Harvey Rose, Budget Analyst: Ann Summercamp,
Deputy Director, Health Service System: John Madden, Assistant Controller; Jean Frasier, Deputy City
Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office; Bart Duncan, Deputy City Attorney. Opposed:
Leonard Lundgren, President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann
Tobian; Nancy Gin, 2nd Vice President, CCSF Retirees Association; Tony Sacco, Retired Firemen and
Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired Firemen and Widows
Association; Robert Pardina; John LeHane, Police Association; Jean Thomas; Earl Gilman; Grady Shawn
Allison; Diane Hermann, Executive Board, Retired Employees. Neither: Jerry De Ryan, Labor Council;
David Novogrodsky, Local 21.
CONTINUED TO CALL OF THE CHAIR by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990468 [City Health Plan]
Supervisor Yee
Hearing to consider the City Health Plan and the increased contributions for employee and dependent
coverage.
3/8/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Supervisor Ammiano; Han>ey Rose, Budget Analyst; Ann Summercamp,
Deputy Director, Health Senice System; John Madden, Assistant Controller; Jean Frasier, Deputy City
Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office; Bart Duncan, Deputy City Attorney. Opposed:
Leonard Lundgren, President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann
Tobian; Nancy Gin, 2nd Vice President, CCSF Retirees Association; Tony Sacco, Retired Firemen and
Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired Firemen and Widows
Association; Robert Pardina; John LeHane, Police Association; Jean Thomas; Earl Gilman; Grady Shawn
Allison; Diane Hermann, Executive Board, Retired Employees. Neither: Jerry De Ryan, Labor Council;
David Novogrodsky, Local 21.
CONTINUED TO CALL OF THE CHAIR by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
City and County of San Francisco
Printed at 11:45 AM on S7S.V9
Finance and Labor Committee
Meeting Minutes
May 26, 1999
990871 [Appropriation, Dept of Public Health-S.F. General Hospital]
Mayor
Ordinance appropriating $19,187,662, Department of Public Health-San Francisco General Hospital, from the
General Fund Reserve to offset the revenue shortfall m the current fiscal year 1998-1999.
(Fiscal impact.)
5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Supervisor Yee; Dr
Mitchell Katz, Director, Department of Public Health; June Gutfleisch, Aide to Supervisor Bierman; Laura
Spanjian, Aide to Supervisor Katz; Mathew Hymel, Mayor's Office; Bill Farley, Pharmacist at San Francisco
General Hospital (SFGH); William Brady, Coalition to Save Public Health; Taejour Ahr, Resident, SFGH;
Jamie Noone; Interns and Residents Association; Lea Curry; Ed Kinchley, Social Worker, SFGH; Michael
Lyon; Doris Mitchell, Health Care Workers, Local 250; Dr. Colleen Townsend; Melchor Bustamante; Iris
Biblowitz, RN
RECOMMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990803 [Kezar Parking Lot]
Supervisor Brown
Resolution authoring and approving the management agreement by and between the City and County of San
Francisco and U.S. Parking, Inc., for the "Kezar Parking Lot" located at Stanyan and Frederick Streets.
(Fiscal impact.)
4/26/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
5/12/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Joel Robinson, Acting Director, Recreation and
Park; Supervisor Ammiano; Supervisor Yee Opposed: Mark Gleason, Teamsters, Local 65. Continued to May 26, 1999.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jackie Fong. Recreation and Park
Department; Ben Burke, Attorney, U.S. Parking, Inc.; George Bailer, Manager, Kezar Parking Lot;
Supervisor Yee; Joel Robinson, Acting General Manager, Recreation and Park Department; Tom Owen,
Deputy City Attorney. Opposed: Mark Gleason, Local 665.
RECOMMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990857 [Recreation and Park Fees]
Ordinance amending Park Code by adding Sections 12.08 approving fees for parking at the Kezar parking lot
in Golden Gate Park. (Mayor)
(Adds Section 12.08.)
4/28/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
5/17/99, SUBSTITUTED.
5/17/99, ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jackie Fong. Recreation and Park
Department; Ben Burke, Attorney, U.S. Parking, Inc.; George Bailer, Manager. Kezar Parking Lot;
Supervisor Yee; Joel Robinson, Acting General Manager, Recreation and Park Department; Tom Owen,
Deputy City Attorney. Opposed: Mark Gleason. Local 665
RECOMMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
City and County of San Francisco
Printed at II :4S AM on 5/2V99
Finance and Labor Committee
Meeting Minutes
May 26, 1999
990870 [Appropriation, Public Utilities Commission!
Mayor
Ordinance appropriating $606,006 from Water Fund Balance. $236,968 from Hetch Hetchy Fund Balance and
$177,726 from Clean Water Fund Balance, (a total of $1,020,700) to fund the establishment and
implementation of Public Utilities Commission Year 2000 (Y2K) Embedded System Compliance Program for
fiscal year 1998-1999.
(Fiscal impact.)
5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Han>ey Rose, Budget Analyst; Carolyn Olson. Assistant General Manager,
Public Utilities Commission; Supervisor Yee; Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990934 [Appropriation, Dept. of Children. Youth and Families]
Supervisors Ammiano. Bierman
Ordinance appropriating $150,000. Department of Children. Youth and Families, from the General Fund
Reserve to fund the New Conservatory Theatre Center, providing arts and health education programs for San
Francisco youth, for fiscal year 1998-1999.
5/10/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; George Vanberg-Wolf. New Consenaton
Theatre Center (NCTC); Supervisor Ammiano; Supervisor Yee; Ed Decker, Executive Director, NCTC; Brad
Pence; Business Manager, NCTC; June Gutfleisch, Aide to Supervisor Bierman. Amended to reduce
appropriation to SI 00, 000; new title.
AMENDED.
Ordinance appropriating $100,000, Department of Children, Youth and Families, from the General Fund
Reserve to fund the New Conservatory Theatre Center, providing arts and health education programs for San
Francisco youth, for fiscal year 1998-1999.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990872 [Appropriation, Police Department!
Mayor
Ordinance appropriating $889,000, Police Department, from the General Fund Reserve to provide additional
funds for Workers' Compensation, installation of a "Bullet Trap" facility, and funds for the Peaceful Streets
Program, for fiscal year 1998-1999.
(Fiscal impact.)
5/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Earl Sanders. Assistant Chief of Police:
Supervisor Yee; Captain Alex Fagan, Police Fiscal Division; Gary Hoy. Department of Public Works. Bureau
of Architecture; Mathew Hymel, Mayor's Office; Fred Howell, Department of Human Resources; John Ricker,
Executive Director of Peaceful Streets; Supervisor Ammiano. Amended to reduce the Bullet Trap Project
budget by $10,000; new title.
AMENDED.
City and County of Sun Francisco
Printed at 11:46 AM on S/2S/99
Finance and Labor Committee
Meeting Minutes
May 26, 1999
Ordinance appropriating $879,000, Police Department, from the General Fund Reserve to provide additional
funds for Workers' Compensation, installation of a "Bullet Trap" facility, and funds for the Peaceful Streets
Program, for fiscal year 1998-1999.
(Fiscal impact.)
RECOMMENDED AS AMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990936 [MOU Amendment, Police Officers Association]
Mayor
Ordinance implementing Amendment No. 3 to the 1996-2001 Memorandum of Understanding between the
San Francisco Police Officers' Association and the City and County of San Francisco to amend salary
provisions for represented classes and to authorize action to rectify prior retirement status for former Airport
Police Officers, effective July 1, 1999.
(Fiscal impact.)
5/10/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director. Human
Resources; Chris Cooney, President, Police Officers Association.
RECOMMENDED by the following vote:
Ayes: 2 - Ammiano, Yee
Absent: 1 - Bierman
990913 [Amendment to MOU, Local 261, Class 7501]
Ordinance implementing Amendment No. 2 to the 1997-2001 Memorandum of Understanding between the
Laborers Local 261 and the City and County of San Francisco by adding a provision to establish the step
increase schedule for Class 7501 employees as set forth in the Memorandum of Understanding Article 111 K,
effective July 1, 1999. (Department of Human Resources)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, Human
Resources.
RECOMMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990914 [Amendment to MOU, Local 216]
Ordinance implementing Amendment No. 1 to the 1998-2001 Memorandum of Understanding between the
Teamsters Local 216 and the City and County of San Francisco to correct clerical omissions by: 1) adding a
provision for a minimum period of time and rate of pay for certain overtime assignments; 2) incorporating rule
changes by the City's Retirement Board regarding crediting of accrued sick leave for retirement purposes; and
3) adding language regarding contributions to the employee tuition reimbursement fund as set forth in the
Memorandum of Understanding, effective July 1, 1999. (Department of Human Resources)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez. Deputy Director. Human
Resources.
RECOMMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
City and County of San Francisco
Printed at 11:46 AM on S/2S.V9
Finance and Labor Committee
Meeting Minutes
May 26, 1999
99091 5 | Amendment to MOU, Local 6, Class 7371]
Ordinance implementing Amendment No. 1 to the 1997-2001 Memorandum of Understandmg between the
International Brotherhood of Electrical Workers Local 6 and the City and County of San Francisco to establish
salary schedules and salary step placement provisions for the newly created classification, Class 7371
Electrical Transit Mechanic, effective July 1, 1999. (Department of Human Resources)
(Fiscal impact.)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, Human
Resources; Kevin Hughes, Local 6.
RECOMMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990077 [City Hall Cafe' Management Agreements]
Resolution authorizing and approving a management agreement between the City and County of San
Francisco and Events Management Inc. dba McCall and Associates, for operation of a cafe' located in the
North Light Court of City Hall; and ratifying certain acts in connection with such management agreement and
a management agreement with L and L, a Partnership for the operation of a cafe' located on the ground floor of
the City Hall. (Real Estate Department)
1/13/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
2/3/99, CONTINUED TO CALL OF THE CHAIR.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Steve Nelson, Director, Administrative
Services. Amendment of the Whole, further amended to reflect retroactivity
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE.
Resolution authorizing and approving retroactively, a month to month management agreement between the
City and County of San Francisco and Events Management Inc. dba McCall and Associates, for operation of a
cafe' located in the North Light Court of City Hall. (Real Estate Department)
RECOMMENDED AS AMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990747 lAffinity Phone Card]
Supervisor Bierman
Resolution authorizing the City Administrator to enter into a Second Amendment to operating the Licensing
Agreement for the San Francisco Affinity Phone Card Program.
4/19/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; June Gutfleisch; Supervisor Ammiano.
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
City and County of San Francisco
Printed at 1 1 :46 AM on S/2S.V9
Finance and Labor Committee
Meeting Minutes
May 26, 1999
991012 |Taxable General Obligation Bonds]
Motion awarding Bonds and fixing definitive interest rates for $20,000,000 General Obligation Bonds
(Affordable Housing), Series 1999A. (Mayor)
5/17/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Laura Opsahl, Mayor's Office of Finance; Harvey Rose, Budget Analyst.
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
9909 1 2 [Reserved Funds, Port]
Hearing to consider release of reserved funds, Port, (FEMA70ES Project, Ordinance No. 87-91), in the amount
of $1,100,000 for earthquake related capital improvements at Pier 70, San Francisco Drydock. (Port)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Peter Dailey, Port, Maritime Director.
Release of reserves in the amount of SI. 1 00, 000 approved.
APPROVED AND FILED by the following vote:
Ayes: 2 - Yee, Ammiano
Absent: 1 - Bierman
990427 [North Mission Quality of Life Issues]
Supervisors Ammiano, Newsom
Hearing to examine the quality of life issues such as homelessness, availability of substance abuse treatment
centers, availability of low-income housing and public safety of the North Mission neighborhood area.
3/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
CONTINUED TO CALL OF THE CHAIR by the following vote:
Ayes: 2 - Yee, Ammiano'
Absent: 1 - Bierman
CLOSED SESSION
Deputy City Attorney Tom Owen announced the following closed session pursuant to Government Code
Section 54956.9(a) and Administrative Code Section 67. 1 1, to confer with legal counsel regarding existing
litigation:
Rooker et al, v. City and County of San Francisco
United States District Court No. C 99-1095 VRW
[Elect Not to Disclose]
Deputy City Attorney Tom Owen announced that the Finance and Labor Committee finds that it is in the best
interest of the public that the Committee elect at this time not to disclose its closed session deliberations
concerning the existing litigation.
City and County of San Francisco
Printed at 11:46 AM on S/28A9
Finance and Labor Committee Meeting Minutes May 26, 1999
ADJOURNMENT
City and County of San Francisco * Prin " d " ' l:46 ** 0H 5/?S/99
Public Library, Gov't Information Ctr.. 5" 1 Fir.
Attn: Susan Horn, Dept. 41
to 35V
CITY AND COUNTY WtSBfflM. b\ OF SAN FRANCISCO
s
BOARD OF SUPERVISORS
BUDGET ANALYST
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
May 26, 1999 _
DOCUMENTS DEPT.
TO: ^Finance and Labor Committee
MAY 2 6 1999
FROM: , Budget Analyst l333
SAN FRANCISCO
SUBJECT: ,May 26, 1999 Finance and Labor Committee Meeting PUBLIC LIBRARY
Item 1- File 99-0916
1. The proposed ordinance would amend Section 16.157 of the
Administrative Code to approve the City's FY 1999-2000 Health Service System
plans and rates of contribution, as adopted by the Health Service Board, to be paid
by the members of the System. The members of the System are employees, retirees,
and surviving spouses of former employees and retirees of the City and County of
San Francisco, the San Francisco Unified School District, and the Community
College District.
Health Plans
2. The Board of Supervisors previously adopted a resolution (File 99-0606)
setting the City's contribution to the Health Service Fund for FY 1999-2000 at
$180.85 per month for each member. The City's contribution was established in
accordance with Charter Sections A8.423 and A8.428, which set the average
contribution rate based on a survey of the 10 most populous counties in California
(excluding San Francisco). The City's contribution of $180.85 per month ($2,170.20
annually) represents an increase of $6.09 per month, or approximately 3.5 percent,
from the FY 1998-99 rate of $174.76 per month ($2,097.12 annually).
3. Once the City's contribution is established, member contributions are
calculated by the Health Service System actuary, Rael and Letson, Consulting
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Actuaries, in order to ensure that contributions from all sources will be adequate to
support anticipated claims for the upcoming fiscal year. The proposed ordinance
would establish member contribution rates for FY 1999-2000 in accordance wkh
Charter Sections A8.421 and A8.422. Charter Sections A8.421 and A8.422 require
approval by three-fourths of the members of the Board of Supervisors after the
Board has secured an actuarial report of the costs and effects of any proposed
change in the benefits of the Health Service System or rates of contribution.
Contribution rates vary according to: (1) whether or not a member is an active
employee, retired employee, or surviving spouse; (2) whether or not that individual
has Medicare coverage; and (3) which of the City's four health plans that individual
elects to join. The actuarial report and details of the member contribution rates are
contained in the file of the Clerk of the Board.
4. The following plans will be offered in FY 1999-2000:
• City Health Plan*
• Kaiser Foundation Health Plan
• Health Net
• PacifiCare
* Administered by the City's Health Service System.
5. According to Ms. Ann Sommercamp, Deputy Director of the Health Service
System, the total amount of employer and member contributions for the health
plans in FY 1999-2000 is estimated to be $192.6 million, which is approximately
11.7 percent ($20.2 million) more than the projected 1998-99 combined employer
and member contributions of $172.4 million. A summary of the estimated FY 1999-
2000 employer and employee contributions of $192.6 is as follows:
Percent
Amount of Total
(Millions) Contributions
City and County Employer Contribution
- Active Employees $101.1 52.5%
- Retired Employees and Surviving Spouses 20.3 10.5%
School District/Community College District
Employer Contribution
- Active Employees
- Retired Employees and Surviving Spouses
Total Employer Contributions
Member Contributions
TOTAL CONTRIBUTIONS
BOARD OF SUPERVISORS
BUDGET ANALYST
24.0
12.5%
1.1
4.0%
$153.1
79.5%
39.5
20.5%
$192.6
100.0%
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
6. According to Ms. Sommereamp, of the total estimated employer
contributions of $153.1 million, approximately $109.0 million or 71 percent, would
be contributed from the City's General Fund. The remaining $44.1 million of
employer contributions would be paid from the City's Special Funds (e.g., Airport,
Port, Water Department and Hetch Hetchy) and from Unified School District and
Community College District revenue sources.
7. As shown in Table 1 below, the change in the monthly rates to be paid by
active City employees with no dependents (single employees) for FY 1999-2000
ranges from no change in the monthly rate to a 155 percent increase of $67.18 per
month ($806.16 annually), depending on the health plan selected (see Comment No.
9 for an explanation of this increase).
A comparison of the FY 1998-99 monthly rates for to be paid by active City
employees with the proposed FY 1999-2000 rates adopted by the Health Service
Board is as follows:
Table 1
Monthly Health Plan Rates to be Paid by Active City Employees
FY 1998-99 and FY 1999-2000
1998-99
1999-2000
Monthly
Percentage
Monthly
Monthly
Increase/
Increase
Rates
Rates
(Decrease)
(Decrease)
Citv Health Plan
Single Employee
$43.43
$110.61
$67.18
155%
Employee plus one dependent
238.12
317.75
79.63
33%
Employee plus two dependents
423.92
536.71
112.79
27%
Kaiser Foundation Health Plan
Single Employee
2.00
4.00
2.00
100%
Employee plus one dependent
164.38
182.58
18.20
11%
Employee plus two dependents
299.16
330.81
31.65
11%
Health Net
Single Employee
2.00
2.00
-0-
0%
Employee plus one dependent
165.72
170.36
4.64
3%
Employee plus two dependents
302.80
311.13
8.33
3%
PacifiCare
Single Employee
2.00
2.00
-0-
0%
Employee plus one dependent
152.81
162.00
9.19
6%
Employee plus two dependents
279.18
295.15
15.97
6%
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
8. A comparison of the FY 1998-99 monthly rates to be paid by retired City
employees who are enrolled in the Health Service System with the proposed FY
1999-2000 rates adopted by the Health Service Board is as follows:
Table 2
Monthly Health Plan Rates to be Paid by Retired City Employees*
FY 1998-99 and FY 1999-2000
1998-99 1999-2000 Monthly Percentage
Citv Health Plan
Single Subscriber
Subscriber plus one dependent
(dependent not Medicare eligible)
Subscriber plus one dependent
(dependent is Medicare eligible)
Monthly
Rates
$0
194.69
157.92
Monthly
Rates
$65.11
272.25
228.69
Increase/ Increase
(Decrease) (Decrease)
565.11
70.77
40%
45%
Kaiser Foundation Health Plan
Single Subscriber 0%
Subscriber plus one dependent 162.38 178.58 16.20 10%
(dependent not Medicare eligible)
Subscriber plus one dependent 28.31 13.62 (14.69) (52%)
(dependent is Medicare eligible)
Health Net
Single Subscriber 0%
Subscriber plus one dependent 166.07 168.36 2.29 1%
(dependent not Medicare eligible)
Subscriber plus one dependent 40.17 35.47 (4.70) (12%)
(dependent is Medicare eligible)
PacifiCare
Single Subscriber 0%
Subscriber plus one dependent 153.16 159.64 6.48 4%
(dependent not Medicare eligible)
Subscriber plus one dependent 28.64 31.54 2.90 10%
(dependent is Medicare eligible)
* Rates listed are those paid by subscribers who are eligible for Medicare Parts A &. B. According to
the Health Services System, such subscribers and their dependents comprise over 90 percent of
retired enrollees in the System. For more detailed rate schedules, see the member contribution
rate schedules on file with the Clerk of the Board.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
As shown in Table 2 above, the change in the monthly rates to be paid by
retired City employees with no dependents (single subscribers) for FY 1999-2000
depending on the health plan selected ranges from a 52 percent decrease of $14.69
per month ($176.28 annually) to an increase of $65.11 per month or $781.32
annually -(in FY 1998-99 there was no charge to a retired single subscriber). See
Comment No. 9 for a further explanation of this increase.
9. Ms. Sommercamp advises that the reason contribution rates for City
employees and retirees under the City Health Plan are increasing is in large part
because in FY 1998-99 a portion of the costs of the City Health Plan were subsidized
by the Plan's Trust Fund and in FY 1999-2000 no such subsidy will be made. The
Plan's Trust Fund is made up of accumulated employer and employee contributions
to the City Health Plan and the interest earned on those monies. For FY 1998-99, it
was determined by the Health Service System that sufficient funds existed in the
Trust Fund to cover projected medical claims and subsidize member contributions,
however for FY 1999-2000 it has been determined that Trust Fund monies are not
sufficient to both cover projected medical claims and provide a subsidy. The Health
Services System reports that, as of June 30, 1997, tbe balance in the Trust Fund
was approximately $29.0 million compared to $12.5 million as of June 30, 1998.
According to the Health Services System, in FY 1998-99 employee
contributions to the City Health Plan were subsidized by the Trust Fund at an
average monthly rate of $42.66 per single active employee. As a result, such a
Trust Fund subsidy of active employee contributions in FY 1998-99 resulted in City
employer contributions for retirees in FY 1998-99 at a higher rate than in FY 1999-
2000, according to a formula set by the Charter, which therefore decreased the
retiree contribution. For example, in FY 1998-99, the majority of retirees received a
City employer contribution of $166.16 compared to $102.51 in FY 1999-2000. For a
more detailed explanation of the Trust Fund and why employee and retiree
contribution rates have increased, see Items 2 and 3, Files 99-0846 and 99-0468 of
this report to the Finance and Labor Committee.
10. A description of the changes to the City Health Plan health benefits in
FY 1999-2000 is provided in the Attachment, provided by the Health Services
System. According to the Health Services System, the major changes in the City-
Health Plan benefits include an annual deductible for all members (employees and
retirees) who use a physician designated as a "preferred provider" of $250 for single
members (currently members who use a "preferred provider" pay no annual
deductible) and an annual prescription deductible for all members of $50 (currently
there is no deductible for prescriptions). The Health Services System reports that no
major benefit changes were made to the other three health plans offered by the City
in FY 1999-2000.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Dental Plan Benefits
11. The Health Service Board has approved the continuance of Delta Dental
of California, the PMI DeltaCare Dental Plan and the Pacific Union Dental Plan.
According to Ms. Sommercamp, as of March 1, 1999, a total of 25,509 active and
retired employees were enrolled in the existing City-paid dental plans. Under the
dental plans, all premiums for active City employees are paid by the City (there is
no employee contribution). Retirees, and active Community College District and
SFUSD employees must pay their dental benefits in full according to a separate
schedule. Total premiums projected to be paid by retirees, and active City College
and SFUSD employees will total $2.1 million in FY 1999-2000, an increase of $0.3
million (16.7 percent) over projected premiums for FY 1998-99 of $1.8 million. As
shown in Table 3 below, total premiums (based on current membership) to be paid
by the City for its active employees will be an estimated $26.1 million for FY 1999-
2000, an increase of approximately $1.1 million (4.4 percent) over projected
premiums for FY 1998-99 of approximately $25.0 million. A summary of these costs
is as follows:
Table 3
Projected Annual Dental Plan Premiums to be Paid by the City
for Active Citv Employees. FY 1998-99 and FY' 1999-2000
Delta Dental of California
PMI DeltaCare Dental Plan
Pacific Union Dental Plan
Total
Projected
Projected
1998-99
1999-2000
Employee
Premiums*
Premiums**
Membership
(in millions)
(in millions)
23,183
$22.9
S23.7
1,584
1.5
1.6
742
0.6
0.8
25,509
S25.0
* Based on March 1, 1999 enrollments at existing monthly rates.
'* Based on March 1, 1999 enrollments at FY 1999-2000 rates.
S26.1
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
12. A comparison of tbe FY 1998-99 and FY 1999-2000 monthly premium
rate schedules for employer contributions of the three dental plans is as follows:
Table 4
Monthly Dental Plan Rates to be Paid by the City for
Active City Employees. FY 1998-99 and 1999-2000
Delta Dental
Single Employee
Employee plus one dependent
Employee plus two dependents
PMI DeltaCare Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
Pacific Union Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
1998-99
Monthly
Rates
$46.68
79.36
121.37
22.17
36.58
54.09
18.55
29.15
46.11
1999-2000 Monthly Percentage
Monthly Increase/ Increase
Rates (Decrease) (Decrease)
$48.05
78.96
118.70
22.17
36.58
54.09
20.40
33.65
49.76
$1.37
(0.40)
(2.67)
-0-
-0-
-0-
1.85
4.50
3.65
3%
(1%)
(2%)
0%
0%
0%
10%
15%
8%
13. A choice of three dental plans that are fully paid for by retirees and
active employees who are ineligible for employer paid dental coverage will also
continue to be offered at no cost to the City. In both FY 1998-99 and FY 1999-2000,
the three dental plans have reduced benefits, such as a lower maximum annual
payment and no orthodontic benefits, in order to reduce the premium cost for plan
participants. Active employees who are not eligible for employer paid dental
coverage include Unified School District and the Community College District
employees.
A comparison of the monthly premium rates to be paid by retired City
employees and other employees who are ineligible for employer paid dental coverage
(i.e. active employees of the Unified School District and Community College
District) for the FY 1998-99 and FY 1999-2000 dental plans are shown in Table 5
below:
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Table 5
Dental Plan Monthly Premium Rates to be Paid by Retired City Employees
and Active Employees Who Are Ineligible for Employer Paid Coverage
FY 1998-99 and FY 1999-2000
Delta Dental
Single Employee
Employee plus one dependent
Employee plus two dependents
PMI DeltaCare Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
Pacific Union Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
1998-99
1999-2000
Monthiv
Percentage
Monthly
Monthly
Increase/
Increase
Rates
Rates
(Decrease)
(Decrease)
$30.38
$34.72
S4.34
14%
60.47
56.30
(4.17)
(7%)
85.08
84.04
(1.04)
(1%)
13.69
13.69
-0-
0%
22.59
22.59
-0-
0%
33.41
33.41
-0-
0%
10.86
13.14
2.28
21%
19.35
21.69
2.34
12%
27.56
32.07
4.51
16%
Recommendation
Since the Health Service System reports that the selection of the Health
Service System plans and determination of the rates of member contribution
for such plans have been conducted in accordance with the provisions of the
City Charter, approve the proposed ordinance.
BOARD OF SUPERVISORS
BUDGET ANALYST
ATTACHMENT
4/30/99
SECTION 3 CHANGES IN BENEFIT PLANS .
You should carefully review the following changes in Benefit Plans before making your Open Enrollment decisions,
(a) Changes To City Health Plan .
(1) Annual PPO Deductible . The Annual PPO Deductible is $250 for employee only, $500 for employee
+ 1 , and $750 for employee + 2 or more. It will be applied to all claims before payment For
employee only, this means the member is responsible for the first $250 of medical charges. *
(2) Catastrophic Loss . The Health Plan will pay 100% of all PPO charges once the member (or family)
has incurred $25,000 of PPO expenses in any benefit year. This applies to the nine Bay Area PPO
counties only.
(3) No Fixed Dollar Copays . The PPO will no longer have copays. Rather City Plan will pay 85% of
PPO and 50% of UCR charges for non-PPO contract rates once the annual deductible is satisfied.
This applies to all medical charges: Hospital, physician, lab, X-ray, MRI, emergency room, etc.*
(4) Annual Non-PPO Deductible . The annual non-PPO deductible will be $500 for employee only,
$l,000_fpr employee + 1, and $1,500 for employee + 2. If a member uses both PPO and non-PPO
providers, the member will need to satisfy the non-PPO deductible. The City Plan will then pay 50%
of UCR charges per member.
(5) Members Outside PPO . For individuals who reside outside of the nine Bay Area PPO counties, City
Plan will continue to pay 80% of covered charges after the annual deductible of $250 for employee
only, $500 for employee + 1, and $750 for employee + 2 or more is satisfied.
(6) Annual Prescription Deductible . An annual prescription deductible of $50 for employee only, $100
employee + 1, and $150 employee + 2 or more will be implemented. For employee only, this means
the member is responsible for the first $50.00 of prescription costs. Once this deductible is met, the
member is responsible for a $9 (generic) or $18 (brand) copayment for a 30-day supply for each
prescription.
^r After the annual prescription deductible is met, the mail order drug benefit copayment is $18
(generic) and $36 (brand) for a 90-day supply. No controlled substances can be ordered via
mail order.
^F (7) Use of Brand Instead of Generic If yon have a prescription for a brand name drug and there
is a generic equivalent available, the drug will be filled using the generic If the physician
and/or patient requests the brand name, the member is responsible for the difference between
the generic and brand name drug.
(8) Drug Utilization Review . A Drug Utilization Review (DUR) program will be instituted July 1, 1999.
This program will determine appropriateness of prescribed medicine. This will prevent prescriptions
being filled when contraindicated conditions are noted. It will also monitor appropriate dosage.
(9) Acupuncture and Chiropractic . The acupuncture and chiropractic (PPO and non-PPO) payment is
50% of charges once the annual deductible has been satisfied. The annual limit on acupuncture and
chiropractic benefits is $1,000 per year for each benefit.
* The local network PPO consists of the nine (9) Bay Area counties: Alameda, Contra Costa, Marin, Napa, San
Francisco, San Mateo, Santa Clara, Solano and Sonoma. These rules apply to the nine Bay Area PPO counties only.
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Items 2 and 3 - 99-0846 and 99-0468
Items: Item 2, File 99-0846: Hearing to consider the escalating
costs of enrolling in the City's health care plans.
Item 3, File 99-0468: Hearing to consider the City Health
Plan and the increased contributions for employee and
dependent coverage.
Description: On May 26, 1999, the Finance and Labor Committee will
consider an ordinance (see Item 1, File 99-0916 of this report
to the Finance and Labor Committee) amending the
Administrative Code to approve (a) the City's four health
plans and three dental plans and (b) the rates of contribution
to be paid by the members of the Health Service System for
FY 1999-2000. The members of the System are employees,
retirees, and surviving spouses of former employees and
retirees of the City and County of San Francisco, the San
Francisco Unified School District, and the Community
College District. (The rates of contribution to be paid by the
City (the employer) were previously approved by the Board of
Supervisors - File 99-0606.)
At the request of the Budget Analyst, the Health Service
System has prepared a comparison of the monthly employer
and member rates paid for the City's Health Plan in FY
1997-98, FY 1998-99, and those proposed for FY 1999-2000,
shown as Attachment I to this report. As shown in
Attachment I, the increase in the monthly rate paid by single
employee members is $89.49 (424 percent), from $21.12 in
FY 1997-98 to $110.61 under the proposed FY 1999-2000
rates. The increase in the monthly rate paid by single retired
members is $65.11, from no charge in FY 1997-98 to $65.11
under the proposed FY 1999-2000 rates.
Attachment II is a memorandum from the Health Service
System which contains an explanation of why FY 1999-2000
costs to enroll in the City's health plans have increased and
the steps the Department is taking to control such costs.
According to the Health Service System, rising costs are due
to increasing health plan costs, the elimination of the Trust
Fund subsidies to the City's Health Plan, and high
utilization of expensive medical treatments.
BOARD OF SUPERVISORS
BUDGET ANALYST
10
Attachment I
Health Services Historic Data on Active Employees
1997/96 Employee Employer Truei Total Cost
Employee
Employee *1
Employee +2
21.12 170.59 42.66 234.37
170.09 17059 72.57 413.25
279.5 170.59 194.46 644 55
1998/99
99/2000
Employee
43.43
174.76
40 64
258.B3
Employee »1
238.12
174.76
35.58
446 46
Employee +2
423.92
174.76
32.88
631 56
Employee
110.61
180 85
none
291.48
Employee +1
317.75
180.65
none
496.60
Employee +2
536.71
180.85
none
71756
Health Services Histonc data tor Retirees on Medicare
1997/98 Retiree City
Retiree Medicare (MC)
Retiree MC -M
Retiree MC-HMC
14824
148.97 148.24
127.47 14824
Trust
Cost
3.78 148.24
26.13 323 34
8.06 283.77
1998/99
Retiree Medicare (MC)
166.16
5.57
171.73
Retiree MC *1
194.69
16616
1063
371 48
Retiree MC+1MC
157.92
166.16
9.63
333.71
1999/2000
Retiree Medicare (MC)
65.11
102.51
none
167.62
Retiree MC +1
272.25
102.51
none
374.76
Retiree MC +1MC
228.69
102.51
none
331.20
Analysis: Per Charter Retirees should pay what the active employees less MediCare costs (43.80)
Effective 1/1/99 Medicare is $45.50. The City must contribute the difference between trie health
cost and this formula. If you subsidy active, retirees would pay that subsidized rate. City will
pay the additional differential.
cAiarvey2.xls
1 1
Attachment II
Page 1 of 2
HEALTH SERVICE SYSTEM
A DIVISION OF THE DEPARTMENT OF HUMAN RESOURCES
CITY AND COUNTY OF SAN FRANCISCO
May 21, 1999
Board of Supervisors
#1 Dr. Carlton B. Goodlett Place
City Hall, Room 244
San Francisco, CA 94102
SUBJECT: Health Insurance Costs
Honorable Members of the Board of Supervisors,
As part of your review of the proposed ordinance to approve the City's FY 1999-2000 Health Service
System (HSS) plans and rates of contribution, you have requested an overview of why health insurance
costs are increasing.
While medical inflation has been relatively stable for the past 4-5 years, there has been an upward trend
in this indicator. A large factor in the moderate trend has been the expansion of managed care and
Health Maintenance Organizations (HMO's) like Kaiser, HealthNet, and PacifiCare. Nevertheless, the
costs are increasing. HSS increases for the HMO's varied from 3.5% to 12%. However, Plan 1 did not
have the managed care controls in place that other plans did. This year, Health Service Board (HSB)
voted to realign cost to what the actuarial cost of the plan is, and, in addition, not to subsidize Plan 1
due to a significant decrease in net assets.
The purpose of the HSS Trust Fund is to cover all possible liability stemming from medical claims for
Plan 1 and premiums due to other providers. In addition, the Health Service Board is charged to ensure
that contributions are adequate to support the cost of medical care to our members. This year the HSB
had an independent outside actuary review the plans and calculate the rates for City Plan 1 as well as
suggest plan design changes.
The City Health Plan is a self-insured plan, which means it is funded entirely through premiums. In the
past few years, Plan 1 paid out more in claims than were received in premiums. The driving factor in
the rise is attributed to high utilization in various areas, such as catastrophic illnesses, renal dialysis,
growth in technology, prescription drugs, etc. This year Plan 1 had 50 catastrophic cases that exceeded
$6 million in medical claims. All of these services, by themselves, are very expensive. There has also
been a structural bacldash by providers.
This week the CALPERS Board announced the rate increases for their Health Maintenance
Organizations (HMOs). The plan costs will rise 9.8% overall, with the highest increase for Kaiser at
11.7%. I feel quite certain that next year's rates will also escalate for HSS.
1145 MARKET STREET SAN FRANCISCO. CA 94103-1523
Administration (415) 554-1737
Attachment I I
^age ^ of 2 —
In response to your query regarding what steps the Health Service Board is taking to address the rising
Plan 1 costs. Health Services is:
■ implementing plan design changes which will lower the projected higher premium by $50/month.
■ Changing the preferred provider/pharmacy benefit management vendors to maximize efficiency.
■ Attempting to control prescription costs by reducing unnecessary purchases of prescriptions;
implement mandatory generics where available, emphasize mail order services for maintenance
drugs, implement Drug Utilization Review, and consistent copays for 30-day supply instead of 90-
day supply.
■ Discontinue the practice of additional subsidies from Trust Fund interest/principal or cost shifting,
which in the past gave a false sense that health costs were free since it significantly reduced
members' health deduction.
The steps the HSB "implemented are needed to keep the City Plan viable. In fact, the premiums charged
by the Plan are based on the previous year's activity - what truly was the cost to run the Plan, along
with the medical inflation trend factor. The major changes affecting employees and retirees this year is
that the HSS Trust Fund will not subsidize the premiums this year.
If you need any additional information, please feel free to contact me.
Respectfully submitted.
Ann Sommercamp
Deputy Director, Human Resources
Health Service System
AS:fnu
Budgets? 1
1 r>
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
Item 4 -File 99-0871
Department: Department of Public Health (DPH)
Item: Supplemental Appropriation in the amount of $19,187,662 for
San Francisco General Hospital (SFGH).
Amount: $19,187,662
Source of Funds: General Fund Reserve
Description: The projected budget deficit for all of the Department of Public
Health, including the Community Health Network and
Population, Health and Prevention, was first reported by the
Controller in his six month report, issued on February 9, 1999.
The actual current total projected deficit for SFGH is
$27,096,716 resulting from a total revenue shortfall of
$30,613,611 less expenditure savings of $3,516,895. However,
this deficit is offset by net savings in other Divisions of the DPH
amounting to $7,909,054 thereby reducing the overall projected
DPH deficit to $19, 187,662. Net General Fund savings from the
other Divisions of DPH will be transferred to SFGH at the close
of Fiscal Year 1998-99 to make up for the total SFGH deficit.
The following table shows projected surpluses and deficits for
the various divisions of DPH.
Surplus
Community Health Network (Deficit)
San Francisco General Hospital $(27,096,716)
Laguna Honda Hospital (5,599,962)
Primary Care 845,994
Forensics
Community Health Network Subtotal $(31,850,684)
Population, Health and Prevention
Central Administration $ (90,251)
Community Health 1,525,236
Mental Health 2,424,195
Substance Abuse 3.203.880
Population, Health and Prevention Subtotal $ 7.063.060
Total Deficit $(24,787,624)
Previously Approved Laguna Honda Hospital
Supplemental Appropriation 5,599.962
Total Department of Public Health Remaining Deficit $(19, 187,662)
BOARD OF SUPERVISORS
BUDGET ANALYST
14
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
Detailed projections for each of the DPH Divisions summarized
in the table above are shown below.
Division
REVENUES
EXPENDITURES
TOTAL
Revised
H UCllM-l
Current
Projection
Surplus/
(DeficMI
Revised
Budget
Current
Protection
Surplus/
(Deficit)
Surplus/
(Deticlti
Community Health
Network
$435,038,184
114.176.983
$ (30.613.611)
(7.765.192)
$465,651,795
121.942.175
$462,134,900 $
119.776.945
3.516.895
2.165.230
$ (27.096.716)
(5.599.962)
SFGH
Laguna Honda
Primary Care
Forensics
Subtotal
$465,651,795
121.942.17S
44.994.719
42.299.280
(2.695.439)
44.994.719
41 453.286
3.541.433
845.994
22.157.197
654.745.88C
22.124.138
613.638.585
(33 059)
22 157197
654.745.886
22.124.138
645.489,269
33.059
9.256.617
(31.850.684)
(41.107.301)
28.569
19.168.863
56.848.151
19.287.683
54 575.559
(116.820)
2.272.592
(90.251)
1.525.236
Population Health
& Prevention
19.197.432
Central Admin
Community Health
Mental Health
19.168.663
56.848.151
56.100.795
(747 356)
1S6.501.384
151.869.399
49.639.222
(4.631.985)
7 36.500
(4.614.272)
156. S01. 384
149.445 204
7.056.180
2 424.195
3.203 880
7.063.060
Substance Abuse
48.902.722
48 902.722
281.421.120
46,435.342
2 467.380
Subtotal
Subtotal DPH
LHH Supplemental
281.421.120
276.806.948
269.743.788
11.677.332
(45.721.573)
5 599 962
20.933.949
(24.787.624)
5 599 962
936.1(7. 006
890.445.433
936.167.006
915.233.057
5599. 962
936.167.006
(19.187.662)
Total DPH
936.167.006
896.045.395
(40.121.611)
91S.233.057
20.933.949
The Attachment to this report provides a detailed description of
the surpluses or deficits in each DPH Division and the programs
that were affected.
This is the third Supplemental Appropriation that has been
submitted for DPH this year. Prior Supplemental
Appropriations are listed below:
Mental Health - File 99-0404 (Finally Approved April 26, 1999) $ 1,158,352
Laguna Honda Hospital - File 99-0506 (Finally Approved
May 10, 1999) 5,599,962
This Proposed Supplemental Appropriation 19.187.662
Total General Fund Supplemental Appropriations $ 25.945,976
Comments:
1. The Budget Analyst has reviewed FY 1998-99 detailed
revenue projections for SFGH. The projected revenue shortfall of
$30,613,611 is largely comprised of certain one time deficits due
to prior year Federal audit adjustments which disallowed
Medicare claims during prior years totaling $5.3 million.
Additionally, SFGH has had a higher than anticipated patient
census comprised of medically indigent individuals, with no
medical coverage or MediCal eligibility that result in no revenue
to SFGH. This has resulted in the diversion of MediCal eligible
persons, that do produce revenue for SFGH. to other hospitals in
the City. Ms. Monique Zmuda anticipates that the ongoing net
BOARD OF SUPERVISORS
BUDGET ANALYST
15
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
revenue impact, after adjustments for rate changes and other
revenue increases, will be a reduction in SFGH revenue of
approximately $17.0 million in FY 1999-2000.
2. Based on these recent SFGH revenue trends and normal
increases to SFGH expenditures, it is highly likely that future
year SFGH budgets will require significantly greater General
Fund support to maintain service levels. The SFGH original FY
1998-99 budget included a General Fund subsidy of $13,720,000.
This supplemental appropriation of $19,187,662 increases the
General Fund subsidy by 139.8 percent to a total of $32,907,662.
However, if offsetting net savings totaling $7,909,054 in other
Divisions of Public Health had not been achieved, the increased
General Fund subsidy for SFGH would be $27,096,716, or an
increase of 197.5 percent.
3. The Budget Analyst has reviewed the DPH deficit projections
and the supporting detailed revenue projections for SFGH.
Based on the financial information submitted by the DPH, the
Budget Analyst concurs with the projected DPH deficit of
$19,187,662.
Recommendation: Approve the proposed supplemental appropriation.
BOARD OF SUPERVISORS
BUDGET ANALYST
16
Attachment - Page 1 of 4
Projected FY 1998-99 Year-End Surplus/Deficit
Division
REVENUES
EXPENDITURES
TOTAL
Revised
Budget
Current
Projection
Surplus/
(Deficit]
Revised
Budget
Current
Protection
Surplus/
Surplus/
IDedcIt)
(Deficit)
Community Health
SFGH
Network
$465,651,795
S465.651.795
121.942.175
S (27.096.716)
(5.599 962)
845.994
5435.038.184
114.176.983
42.299.280
22.124.138
S (30,613.611)
(7.765.192)
(2.695.439)
5462.134.900 S
119.776.945
41 453.286
3.516.895
2.165.230
3.541.433
Laguna Honda
121.942.175
Primary Care
Forensics
Subtotal
Population Health
Central Admin
44.994.719
22,157,197
44.994.719
(33 059)
22.157.197
22 124 138
33.059
9.256.617
(31.850.684)
654.745.8S6
613.638.585
(41.107.301)
654.745.886
645.489.269
& Prevention
19.166.863
19.197.432
56.100.795
151.869.399
28.569
(747.356)
(4 631.985)
19.168.863
56.848.151
156.501.384
19.287.683
54.575.559
149 445.204
(118.820)
2.272.592
7.056 180
(80.251)
1.525.236
2 424 195
Communily Heallh
Menial Health
Substance Abuse
Subtotal
56.848.151
156.501.384
48.902.722
49 639.222
736 500
46.902 722
46 435 342
2.467.380
3.203 880
281.421.120
276.806.848
(4.614.272)
281.421.120
269.743.788
11.677.332
7.063.060
890.445.433
(45.721.5731
936.167.006
Subtotal DPH
LHH Supplemenlai
Total DPH
936.167,006
936.167.006
915.233.057
20.933.949
20.933.949
(24.787.624)
5 599 962
5 599.962
896.045.395
5 599,962
(40.121.611)
(19.187.662)
936.1(7.006
915.233.057
COMMUNITY HEALTH NETWORK
San Francisco General Hospital: Current projections show a year-end shortfall of S27,096,716.
Revenues are projected to be $30,61 3,61 1 under budget due to:
• a 51,800,000 combined deficit for Short Doyle and Short Doyle Medi-Cal revenues
due to lower than expected reimbursement for acute inpatient psychiatric services;
• a $8,998,316 surplus in Medi-Cal revenues due to higher than expected MAA/TCM
revenues ($4.1 million) and other Medi-Cal revenues ($4.9 million). A portion of this
revenue surplus is offset by the shortfall associated with uncollectible accounts;
• a $11,558,149 deficit in Medicare revenues primarily resulting from additional
contractual allowances and reductions in current year revenues for current and prior
year audit adjustments. Contractual allowances are reductions to revenues reflecting
actual reimbursement rather than patient charges;
• a $14,025,821 deficit in patient revenues based on year-to-date actual revenue;
• a $5,524,035 surplus in miscellaneous revenues primarily due to capitation fees
which are posted to this account;
• a $2,248,008 surplus from higher than anticipated Realignment revenue ($3.1
million) offset by reduce Prop 99 revenues (-$851,992); and
• a $20,000,000 shortfall in revenues associated with uncollectible accounts.
Expenditures are projected to be under budget by S3. 5 16.895 due to:
• a SI. 077.932 deficit from salaries and fringe benefits resulting from increased per
diem and overtime expenditures to provide for high patient census that is above the
level budgeted;
• a $2,250,000 deficit in contractual expense primarily due to increased expenses for
UC (-$1.2 million) and additional work order expenses (-$1.7 million) offset by
SOURCE: DEPARTMENT OF PUBLIC HEALTH REVENUE AND EXPENDITURE REPORT
MAY 4. 1999
17
Attachment - Page 2 of 4
expenditure savings in marketing ($650,000). Work order expenses will be offset by
an equivalent work order recovery;
• a $700,000 surplus in materials and supplies based on actual year-to-date expenses;
• a $3,444,827 surplus in equipment expense due to:
• savings in prior year expenses carried forward ($1,643,000);
• deferred equipment ($405,000);
• lower than expected equipment lease payments ($267,827);
• equipment that will be lease financed ($507,000);
• deferred capital ($ 1 50,000); and
• the close out of capital balances ($472,000);
• a $2,700,000 savings in miscellaneous expenses due to savings from delayed start up
of the EHSS insurance program ($3.5 million) offset by additional workers'
compensation expense (-$0.8 million).
Laguna Honda Hospital: Current projections show no year-end surplus or deficit, assuming
approval of $5.6 million in General Funds contained in a supplemental appropriation request.
The $5.6 million is the estimated amount that the Board of Supervisors will approve.
Revenues are projected to be $7,765,192 below budget due to:
• a $7,343,128 deficit in Medi-Cal revenues primarily due to reduced census necessary
to comply with the Plan of Correction;
• a $1,091,224 deficit in Medicare revenues primarily due to reduced acute admissions
and reduced SNF census;
• a $704,470 surplus in patient revenues due to higher than expected volume of self pay
patients; and
• a $35,310 deficit in other miscellaneous revenues primarily due to a decrease in
cafeteria meal sales.
Expenditures are projected to be under budget by $2,165,230 due to:
• a $1,826,073 savings from salaries and fringe benefits resulting from increased salary
savings due to attrition;
• a $75,000 deficit in contractual expense resulting from unbudgeted facility planning
expenses;
• a $350,000 deficit in materials and supplies due to additional purchases to comply
with the Plan of Correction;
• a $250,000 savings in equipment as a result of deferred purchases;
• a $514,157 surplus in miscellaneous expenses from capital ($1,144,000) offset by
additional legal fees and workers compensation expense (-$629,843). The surplus
from capital assumes savings from the roof replacement project ($1,201,000), the
psych cohort unit ($400,000) offset by additional facilities maintenance expense for
DOJ interim measures (-$457,000).
Primary Care: Current projections show a year-end surplus of $845,994
Revenues are projected to be $2,695,439 under budget due to:
SOURCE: DEPARTMENT OF PUBLIC HEALTH REVENUE AND EXPENDITURE REPORT
MAY 4. 1999
18
Attachment - Paee 3 of 4
• a $3,765,823 deficit in Medi-Cal primarily due to lower than expected FQHC
revenue;
• a 5801,553 surplus in Medicare resulting from increased patient volume;
• a $39,948 surplus in Patient revenues;
• a $228,883 surplus in miscellaneous revenues based on actual year-to-date revenues
received.
Expenditures are projected to be under budget by $3,541,433 due to:
• a $1,605,410 surplus from salaries and fringe benefits resulting from the hiring freeze
imposed in the Fall;
• a $1,920,000 surplus due to savings in deferred capital ($1.5 million) and equipment
($0.4 million) included in the Department's expenditure reduction plan; and
• a $16,023 surplus in miscellaneous expenses.
Forensics: Current projections show no year-end surplus or deficit.
Revenues are projected to be $33,059 under budget due to:
• a $5,000 surplus in miscellaneous revenues; and
• a $38,059 deficit in other resulting from work order recoveries that will be offset by
equivalent expenditure savings.
Expenditures are projected to be under budget by $33,059 due to:
• a $36,442 savings from salaries and fringe benefits based on actual year-to-date
personnel expense and reduced work order expenses;
• a $84,457 savings in contractual expense;
• a $358,591 deficit in materials and supplies primarily due to increased expense for
pharmaceuticals; and
• a $270,751 savings in miscellaneous expenses primarily due to deferred equipment
purchases.
POPULATION HEALTH AND PREVENTION
Central Administration: Current projections show a year-end deficit of $90,251.
Revenues are projected to be $28,569 over budget due to:
• a $29,146 surplus in Medi-Cal revenues primarily from prior year revenues; and
• a $577 deficit in miscellaneous revenues.
Expenditures are projected to be over budget by $1 1 8.820 due to:
• a $266,820 deficit from salaries and fringe benefits based on actual year-to-date
personnel expense;
• a $16,000 surplus in materials & supplies;
• a $60,000 surplus in equipment; and
• a $72,000 surplus in other miscellaneous expenses primarily due to deferred capital
($50,000) that is included in the Department's expenditure reduction plan.
SOURCE: DEPARTMENT OF PUBLIC HEALTH RE\F1NUE AND EXPENDITURE REPORT
MAY 4. 1999
19
Attachment - Page 4 of 4
Community Health: Current projections show a year-end surplus of SI, 525,236.
Revenues are projected to be 5747,356 under budget due to:
• a 5466,245 surplus in Medi-Cal revenues primarily resulting from higher than
expected revenues from the CCS program in Maternal and Child Health;
• a 549,703 surplus in Medicare revenues primarily from the TB clinic;
• a 5341,322 deficit in patient revenues primarily from the CCS program that will be
offset by expenditure savings for contractual services;
• a 5619,767 deficit in miscellaneous revenues due to lower than expected fee revenues
from BEHM; and
• a 5302,215 deficit in work order recoveries that will be offset by an equivalent
expenditure savings in salaries.
Expenditures are projected to be under budget by 52,272,592 due to:
• a 51,170,684 savings from salaries and fringe benefits based on actual year-to-date
personnel expense;
• a 5992,908 surplus in contractual services from the CCS program
• a 531,000 surplus in materials and supplies; and
• a 578,000 surplus in miscellaneous expenses.
Mental Health: Current projections show a year-end surplus of 52,424,195. This assumes
approval of 51.1 million in General Funds for a supplemental appropriation to offset increased
pharmacy expenses.
Revenues are projected to be 54,631,985 below budget due to:
• a 5213,000 surplus in Short-Doyle revenue;
• a 52,300,000 deficit in Short-Doyle Medi-Cal revenue for acute psychiatric services
at SFGH (-51.8 million) and for the EPSDT program (-50.5 million). Both of these
revenue shortfalls will be offset by expenditure savings;
• a 51,188,000 deficit in Medi-Cal revenue primarily due to delays in opening the
adolescent Mental Health Rehabilitation Facility (-50.7 million) and less than
anticipated revenue for pharmaceuticals (-50.5 million). The revenue loss associated
with delays in opening the MHRF will be offset by savings in contractual services
expense;
• a 51,000,000 deficit in Medicare revenues resulting from lower than expected
reimbursement;
• a 563,649 deficit in Patient revenues;
• a 5249,288 deficit in miscellaneous revenues based on actual year-to-date revenues;
and
• a 544,048 deficit in work order recoveries that will be offset by equivalent
expenditure savings.
SOURCE: DEPARTMENT OF PUBLIC HEALTH REVENUE AND EXPENDITURE REPORT
MAY 4. 1999
20
Memo to Finance and Labor Committee
Ma>' 26, 1999 Finance and Labor Committee Meeting
Item 5 - File 99-0803
Note: Tbis item was continued by the Finance and Labor Committee at its meeting
of May 12, 1999.
Department: Recreation and Park Department (RPD)
Item: Resolution authorizing and approving a management
agreement by and between the City and County of San
Francisco and U.S. Parking, Inc., for U.S. Parking Inc. to
operate Kezar Parking Lot located at Stanyan and Frederick
Streets.
Location:
Purpose of
Management
Agreement:
No. of Sq. Ft.
Description:
Stanyan and Frederick Streets
To provide for the operation of a City-owned surface parking
lot with a capacity of 341 vehicles.
107,440 square feet
The proposed subject management agreement between the
Recreation and Park Department (RPD) and U.S. Parking,
Inc. would authorize U.S. Parking. Inc. to operate the Kezar
Parking Lot, a Cit}"-owned property, accommodating 341
vehicles at Stanvan and Frederick Streets.
The current lessee, City Parking Company, has been
operating the Kezar Parking Lot on a month-to-month basis
since their 5-year lease agreement with the Recreation and
Park Department expired on May 31, 1992. According to Mr.
Chris Mack of the Recreation and Park Department, based
on 12.5% of monthly revenues of up to $16,167 and 10.57% of
monthly revenues over $16,167, City Parking Company paid
the RPD approximately $60,000 annually in rent during
Fiscal Year 1997-1998 under the existing month-to-month
lease agreement. The budgeted annual rental payment to
the City for Fiscal year 1998-1999 is $60,000, according to
Mr. Mack.
This subject resolution would authorize a management
agreement, as opposed to a lease agreement. As noted above,
under the existing lease agreement, the City Parking paid
RPD rent in the form of a percentage of monthly gross
revenues. Under the proposed management agreement, all
parking revenues from the Kezar Parking Lot would be
BOARD OF SUPERVISORS
BUDGET ANALYST
21
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Estimated Annual
Revenues:
deposited daily into an account controlled by the City and,
from that account, RPD would pay U.S. Parking Inc. a fixed
monthly management fee of $17,021 for the operation of the
parking lot. Mr. Mack reports that, per the proposed
management agreement, U.S. Parking would also provide
approximately $55,000 in capital improvements to the lot
including an attendant shelter, state-of-the-art ticket
dispensing, card readers, and revenue collection/monitoring
equipment. Under this management agreement, the City
would keep all of the revenues instead of receiving a
percentage of gross revenues.
$240,000 ($20,000 per month) under existing rates.
$492,288 ($41,024 per month) under proposed rates.
(See Comment No. 2 below)
Increase in Annual
Revenues: $180,000 under existing rates.
$432,288 under proposed rates, (see Comment No. 2 below)
Term of Agreement: Five years, commencing on the first day of the month
immediately following the Board of Supervisors approval of
the proposed lease. In addition, on and after the 30-month
anniversary of the effective date of the subject management
agreement, RPD would have the right to terminate the
subject agreement, with or without cause, with at least 180
davs written notice.
Right of Renewal: None.
Insurance
Provision:
U.S. Parking, Inc. would be required to maintain Garage
Liability and Garage Keeper's Insurance with a limit of not
less than $1,000,000, in addition to Workers Compensation,
Comprehensive General Liability and Comprehensive
Automobile Insurance.
Comments:
1. On November 10. 1998, the Department of Real Estate
issued an Invitation for Bids (IFB) to operate the Kezar
Parking Lot and received eight bids on December 17. 1998.
The Attachment to this report, provided by the RPD. lists the
eight companies that responded to the IFB and the bid
submitted by each. The bid amounts represent the monthly
management fee payable by RPD to the parking operator. As
BOARD OF SUPERVISORS
BUDGET ANALYST
22
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
noted in the Attachment, U.S. Parking, Inc. submitted the
lowest monthly management fee bid of $17,021.
2. According to Mr. Mack, the subject management
agreement would increase annual revenues from the Kezar
Parking Lot by $180,000 annually from the $60,000 in
revenue budgeted for FY 1997-98 to annual revenues of
$240,000 based on existing parking rates, an increase of 300
percent. This increase results simply because the RPD will
receive all parking revenues and pay a management fee for
operation of the parking lot instead of receiving a percentage
rent based on a lease agreement that began in 1987 and
expired in 1992.
3. According to Mr. Mack, RPD will provide improvements
to the lot including re-surfacing, striping, and installation of
bike lockers in the first year of the subject management
agreement and that such improvements are estimated to cost
$25,000.
4. Section 7.1 of the proposed management agreement
contains the following language:
"Manager [of the Kezar Parking Lot] shall retain the
personnel employed at the [Kezar Parking] Lot by the
prior Manager who have a minimum of six (6) months
service at the [Kezar Parking] Lot unless any such
personnel are terminated for just cause.
Notwithstanding the foregoing, if Manager has a
collective bargaining agreement with its employees,
such retained personnel shall be subject to the
termination provisions under such collective '
bargaining. In the event Manager retains personnel
employed at the [Kezar Parking] Lot by the prior
Manager for more than sixty (60) days from the
commencement of this Management Agreement, such
personnel shall carry with them all the seniority,
vacation and pension rights accumulated during their
employment by the prior Manager and shall be
carried on the books of Manager as of the service
starting date of the prior Manager."
Mr. Joel Robinson of RPD states that Section 7.1 of the
proposed management agreement will be fully enforced by
RPD.
BOARD OF SUPERVISORS
BUDGET ANALYST
23
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
5. Item 6, File 99-0857 in this report to the Finance and
Labor Committee is a companion ordinance to increase the
parking rates at the Kezar Parking Lot.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
24
i
Exhibit A
VT7AP ViT ng jlG LOT BID RESULTS
December 17, 1998
HRC cvppfooM
^pgffi lig p
1. US Parting, Inc.
1 317,021.00
'No.VelS
2. City Parking Co.
18.700.00
Yes
3. On-line Parking
19,551.00
No
4. Danas Pariring_
19,710.61
Yes
5. Parian* Concerns. Inc.
22,498.00
No
6. ' Pacific Park Management
22.747.04
Yes
7. ABC ParidngrTHOR
23,888.00
Yes
8. Chu Fun* and Danid Srid
24.288.00
Yes
25
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 6 - File 99-0857
Department:
Item:
Description:
Comments:
Recreation and Park Department (RPD)
Ordinance amending the San Francisco Park Code by adding
Section 12.08 revising parking rates at the Kezar Parking
Lot located at Stanyan and Frederick Streets (see Comment
No. 4).
The proposed ordinance would increase parking rates at the
Kezar Parking Lot, a City-owned property located at Stanyan
and Frederick Streets which accommodates approximately
341 vehicles. This subject lot is approximately 107,440
square feet.
According to Mr. Chris Mack of the Recreation and Park
Department (RPD), the current parking rates at the subject
parking lot have been in effect since September 1991, almost
8 years. The proposed ordinance would increase parking
rates between 0% and 140% as shown in Attachment I
provided by RPD.
1. According to Mr. Mack, RPD based the proposed parking
rate increases on the parking rates charged at the only
parking lot that RPD considers comparable to the subject
parking lot. Attachment II, provided by Mr. Mack, lists the
parking rates at these two lots. Mr. Mack further explains
that RPD is proposing these rate increases in conjunction
with a proposed new management agreement for the
operation of the subject parking lot (see Item 1 File 99-0803
of this report to the Finance & Labor Committee).
2. Mr. Mack reports that the proposed hourly rate for 2-3
hours of parking is incorrectly listed on the proposed
ordinance as $4.50 instead of $3.00 and that the hourly rate
for 3-4 hours of parking was inadvertently not included in
the proposed ordinance. Accordingly, line 18 of the proposed
ordinance should be amended to read, "2-3 hours $3.00"
instead of $4.50 and a new line should be inserted after line
18 that reads, "3-4 hours $4.50".
3. According to Mr. Mack, the total estimated annual
parking revenues to be realized by the City from the existing
parking rates under the proposed new management
agreement are $240,000 (see Item 5, File 99-0803 of this
BOARD OF SUPERVISORS
BUDGET ANALYST
26
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
report to the Finance and Labor Committee). Mr. Mack
explains that approval of the revised parking rates under the
subject proposed ordinance would result in estimated
increased annual parking revenues of $252,288, or a 105%
increase, thereby resulting in total estimated annual parking
revenues of $492,288.
4. According to Ms. Miriam Morely of the City Attorney's
Office, the current parking fees charged at the Kezar Parking
Lot are not included in Administrative Code because, prior to
the 1996 Charter, Board of Supervisors approval was not
required for parking fees established by the Recreation and
Park Department. Ms. Morely clarifies that the current
Kezar Parking Lot parking fees were established before 1996
and that the proposed ordinance would amend the Park Code
by adding a new section containing the proposed parking fees
for the subject parking lot.
Recommendations: 1. In accordance with Comment No. 2 above, amend line 18
of the proposed ordinance to read, "2-3 hours $3.00" instead
of $4.50, and insert a new line after line 18 that reads, "3-4
hours $4.50".
2. Approval of the proposed ordinance, as amended, is a
policy decision for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
27
MflY-13-1999 16:33
SF REC PARK
415 831 2099 P. 02/03
Attachment I.
Kezar Current and Proposed Rate w/Increases
Category
Current
Rate
Proposed
Rate
Increase
In Rate
Increase of
Proposed Rates
Over Current Rates
0-1 hour
S 1.00
S 1.00
5 0.00
0%
1 -2 hours
$ 1.75
S 2.00
$ 0.25
14%
2-3 hours
$ 2.75
$ 3.00
5 0.25
09%
3-4 hours
S 4.00
$ 4.50
$ 0.50
12%
4-5 hours
S 4.50
S 6.00
$ 1.50
33%
5- 12 hours
$ 5.00
S 8.00
$ 3.00
60%
Overnight
$ 5.00
S 12.00
$ 7.00
140%
Special Event
$ 3.00
$ 5.00
$ 2.00
67%
Monthly Residential
$ 55.00
S 85.00
$30.00
54%
Monthly Commercial
5 days/week
5100.00
$125.00
$25.00
25%
Monthly Commercial
7 days/week
$125.00
$135.00
$10.00
8%
Monthly
Senior/Disabled
S 15.00
$ 35.00
$20.00
133%
Lost Ticket Fee
1 $ 3.00
$ 3.00
$ 0.00
0%
Validated Ticket Books
S 75.00
I $75.00
1 $ 0.00
0%
G:\PROPERTY\Kaar Puking Lat\Cuiraa ind Proposed Rate Incre»iri 05-U-99.OOC
28
KEZAR PARKING RATE COMPARISON
Attachment II
APPENDIX
Comparison of Hourly Rates
B
9
1
S
<—
6
L.
V
M
E
a
Z
u
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■
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3
u
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a.
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£
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- a
i s
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^ i
3 U
■ "2
" 2
E «. B.
u C p
■ ■ E
— - —
2 E 3 2
J O 4. U
Otol
S1.00
$1.00
$2.00
0%
1 to 2
$1.75
$2.00
$4.00
14.30%
2 to 3
$2.75
$3.00
$6.00
9.10%
3 to 4
$4.00
$4 50
$8 00
12.50*/.
4 to 5
$4.50
$6.00
$10.00
33.30%
5to6
$5.00
$8.00
$12.00
60.00%
6to7
$5.00
$8.00
$16.00
60.00%
7to8
$5.00
$8.00
$16.00
60.00 1 i
8to9
$500
£8 00
$16.00
60.00%
9to 10
$5.00
$8.00
$16.00
60.00%
lOtoll
$5.00
$8.00
$16.00
'/.■■«-.
11 tol2
$5.00
$8.00
$1600
60.00%
Over Night
$5.00
$1200
$1600
140.00%
(24 Hours)
Monthly Raxes
Residential Ter
Month (Within 3
Blocks of the Lot.)
$55.00
$85.00
Limrted-i
54.55*
•S7.0Q/Mor.th, 5 pm to 8 am rain,
no limit on Weekends & Holidays.
Regular rate 8 am to 5pm
Commercial Per
Month (Outside 2
Blocks of the Lot).
5 days/week usage
s 100.00
$125.00
N'A
25%
7 days/week usage
$125.00
$135.00
N A
8 s ,.
Senior/Disabled
$15.00
$35.00
Free*
133%
•24 Hrs/Day,
365 days a Year.
Only for Disibied.
Other Kates
1 hr Validation
Stickers
$75.00
$75 00
N'A
0%
Special Event
$3.00
S5 00
N/A
67%
Mote:
UC is a covered garage. Kezar is an uncovered lot
-;--_ : ::
29
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 7 - File 99-0870
Department:
Item:
Amount:
Source of Funds:
Description:
Public Utilities Commission (PUC)
Supplemental appropriation ordinance in the amount of
$1,020,700 from unappropriated fund balances in the
Water Fund, Hetch Hetchy Fund, and Clean Water Fund
to pay for the establishment and implementation of a
Year 2000 (Y2K) embedded system compliance program
for the PUC, providing for retroactivity.
$1,020,700
$ 606,006 Water Fund balance
236,968 Hetch Hetchy Fund balance
177.726 Clean Water Fund balance
$1,020,700 Total
The proposed ordinance would appropriate
unappropriated fund balances in the Water Fund, Hetch
Hetchy Fund, and Clean Water Fund in the amount of
$1,020,700 to pay for the establishment and
implementation of the Public Utilities Year 2000 (Y2K)
Embedded System Compliance Program. According to
Ms. Carolyn Olsen of the PUC, the PUC's utility services
have a variety of embedded computerized systems that
use time sensitive integrated electronic chips to monitor
and control the equipment. The Y2K Embedded System
Compliance Program is designed to identify and address
any problems that could lead to system malfunction and
failure in the PUC's water transmission, treatment and
distribution, power generation and transmission, and
wastewater collection and treatment svstems.
According to Ms. Olsen, the initial phase of the Y2K
Embedded System Compliance Program was funded
through a $460,000 reallocation of funds from the PUC's
FY 1998-99 capital budget. The PUC is now requesting a
total of $1,020,700 in order to (1) replenish the $460,000
previously expended from the PUC's FY 1998-99 capital
budget and (2) spend an additional $560,700 to continue
the Y2K program through its completion in December of
2000. Ms. Olsen reports that the $460,000 was reallocated
from the following three capital projects: (1) $100,000
BOARD OF SUPERVISORS
BUDGET ANALYST
30
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
from Hetch Hetchy Power System's Control and Data
Acquisition (SCADA) project; (2) $300,000 from the Water
Supply and Treatment Division's Rehabilitation and
Upgrade of the Water Treatment Facilities and (3)
$60,000 from the City Distribution System's Standby
Generators. Ms. Olsen advises that $317,591 of the
$460,000 was expended on the Y2K Embedded System
Compliance Program prior to appropriation approval by
the Board of Supervisors because the PUC determined
that the Y2K project was vital to the PUC's operations
and it would not be completed prior to January 1, 2000, if
work were postponed until the subject supplemental
appropriation was approved.
Budget: The PUC reports that the total requested supplemental
appropriation of $1,020,700 for the Y2K Embedded
System Compliance Program includes staff and
remediation costs of $580,019 and consultant fees of
$440,681. The Attachment, provided by the PUC, contains
a summary budget for the total estimated project cost of
$1,020,700. The Budget Analyst has reviewed additional
budget details provided by the PL>C to support this
request.
Comments: 1. Ms. Olsen advises that the consultant selected for the
Y2K Embedded System Compliance Program is
OCC/SOHA, a joint venture. Ms. Olsen reports that
OCC/SOHA was selected from an "as needed" engineering
pool that PUC currently maintains with ten engineering
services firms. According to Ms. Olsen, the PUC uses a
competitive Request for Proposal process to select the "as
needed" contractors. The PUC decided to use the existing
"as needed" contractors for this Y2K project because Ms.
Olsen reports that the PL T C determined that a new RFP
process would take approximately six months to complete,
which would not allow sufficient time to undertake the
Y2K project prior to January 1, 2000. Ms. Olsen states
that the reason for selecting OCC/SOHA over the other
nine firms included in the PL'C "as needed" pool of
engineering services firms is due to their expertise and
availability.
2. The Board of Supervisors previously appropriated
$500,000 in both FY" 1997-1998 and 1998-1999, for a total
BOARD OF SUPERVISORS
BUDGET ANALYST
31
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
of $1,000,000, for Year 2000 compliance expenditures.
These appropriations included expenditures for the City's
payroll system ($247,000), the Health Services System
($186,000), the Mayor's Emergency Telephone System
($65,000), the Court Management System ($126,000), a
contract to assess the City's exposure to non-compliant
micro-chips in vehicles, elevators, medical equipment and
other devices ($25,000) and various smaller projects
($351,000). In January of 1999, the Board of Supervisors
appropriated funds to create a Year 2000 team to provide
technical assistance, monitoring, testing and
implementation of Year 2000 compliance requirements
($979,000). Finally, in April 1999 the Board of
Supervisors appropriated funds for the replacement of the
Department of Building Inspection's network equipment,
upgrading of software and hardware, and integration of
the Department's Permit Tracking and Issuance System
($1,490,724) and to the Department of City Planning for
new Year 2000 compliant equipment, software and
upgrades ($491,530). Therefore, to date, a total of
$3,961,254 has been appropriated for Year 2000
compliance expenditures.
The table below summarizes total Year 2000 compliance
expenditures to date:
Fiscal Year 1997-1998 and 1998-1999
Expenditures $1,000,000
January 1999 Supplemental Appropriation
(File 98-2130) 979,000
April 1999 Supplemental Appropriation
(File 99-0667) 1,490,724
April 1999 Supplemental Appropriation
(File 99-0668) 491.530
Total to date $3,961,254
With the approval of the subject requested supplemental
appropriation of $1,020,700, expenditures for Year 2000
compliance would total $4,981,954.
3. According to Mr. Matthew Hymel of the Mayor's
Budget Office, any additional requests for Year 2000
compliance expenditures for other City departments will
be included in the City's Fiscal Year 1999-2000 budget.
BOARD OF SUPERVISORS
BUDGET ANALYST
32
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Such expenditures will be analyzed by the Budget
Analyst during the FY 1999-2000 budget review.
Recommendation: Approval of the proposed ordinance is a policy matter for
the Board of Supervisors because the PUC has already
expended approximately $317,591 of previously allocated
funds to other capital improvement projects for this Y2K
project without first obtaining approval from the Board of
Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
33
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34
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 8 - File 99-0934
Department:
Item:
Amount:
Source of Funds:
Description:
Budget:
Comments:
Department of Children, Youth and Families
Supplemental appropriation ordinance in the amount of
$150,000 of General Fund monies to fund the New
Conservatory Theatre Center to provide arts and health
education programs for youth.
$150,000
General Fund Reserve
The New Conservatory Theatre Center is a non-profit
professional theatre arts school for youth ages 4-19 and
performing arts complex located at 25 Van Ness Avenue.
The proposed ordinance would appropriate $150,000 of
General Fund monies to the New Conservatory Theatre
Center to fund personnel, program, and rental costs.
Attachment I provided by the New Conservatory Theatre
Center provides descriptions of the programs which would
receive funding under this request.
Attachment II, provided by the New Conservatory
Theatre Center, contains budget details for this $150,000
request. Attachment III provided by the Center contains
the Center's original overall FY 1998-99 budget and
funding sources, which reflects a net income of $18,590.
1. According to Mr. George Vanberg-Wolff of New
Conservatory Theatre Center, the Center's fiscal year
runs from September 1, 1998 to August 30, 1999. Mr.
Yanberg- Wolff has provided Attachment IY of this report
which represents that, as of February 28, 1999 (the first
six months of the Center's FY 1998-99), the Center had a
shortfall of $83,416. Therefore, according to Mr. Yanberg-
Wolff, the New Conservator}' Theatre Center is projected
to have a FY 1998-99 operating shortfall of approximately
$166,832 instead of an original projected net income of
$18,590.
2. According to Mr. Yanberg-Wolff, the subject
supplemental appropriation request would be used to pay
for $150,000 of the latest shortfall of $166,832, as
BOARD OF SUPERVISORS
BUDGET ANALYST
35
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
projected by the Center. Mr. Vanberg- Wolff advises that
the balance of $16,832 ($166,832 less $150,000) would be
made up by grants from the private sector. According to
Mr. Yanberg-Wolff, the New Conservatory Theatre
Center's deficit in FY 1998-99 is due to decreased private
funding and increasing costs.
3. Mr. Yanberg-Wolff reports that the New Conservatory
Theatre Center received $50,000 from the City's Grants
for the Arts Program for FY* 1998-99. According to Mr.
Yanberg-Wolff, such funds support non-youth related
programs at the New Conservatory Theatre Center and
the subject requested $150,000 would fund youth-related
programming which the Grants for the Arts funds do not
support.
Recommendation: Approval of the proposed ordinance is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
36
Attachment I
Page 1 of 2
THEATRE CENTER OVERVIEW - YOUTH PROGRAMS
HIV Tourinp Division
school-aged audioes), have proven to be an effective^,*™ ^wnToh tS IS
young people each season, including children and youth from the San SS£
School District (SFUSD) and Local high Risk Youth Facilities Since u£f£ K?
Conservatory Theatre Center HIV Tounng Division has been an appro ed and vel
mthzed program of the SFUSD School Health Programs. However due To itc ml HIV
Z T ^nc" 8 , ' rendS m ,hC United S,ates ' " has become mcreasmol diffi Xt
underwrite AIDS education efforts pnmanly wtth foundation and corporate conrtbutions
Although we have provided these programs to City and Countv of San Fr^cise Tfor n
years, we must now ask Cry and County of San Francisco to co nibote „ ord r ,o e'° D
h programs m existence. City and Counry of San Francisco funding w II eusu e to
these programs continue to augment the current Healthy Kid's curriculum for San
Francisco's public school children and youth.
Elementar v/Middle School Matinee Series
The New Conservatory Children's Theatre Company Elementary/Middle School Matinee
Series produces subsidized theatre for public school audiences. Upwards of 1T0OO
elementary school children and men teachers in San Francisco enjoy SdSift- are
s hool cSuLTa d n T7 inS ' Th ' S WSh qUMty bl " ' 0W —^ expense s*^
scnool curriculum and introduces young audiences to the world of theatre Here a«ain
he New Conservatory Theatre Center must ask City and Countv of San Francisco to
contribute to the costs associated with such programming or risk losine ,h s pro" ant
vears rL Tr ylde u t0 "* and C ° Unt >' ° f Sa " Frandsc ° - h0 °' a"d,n P cesTl5
Ser, ha^wm to" £T "" ^ "'" *" "^ ^ ^
After-School Satellite Drama Programs
Sid? ?; SCh ,°t?, atemte ° rama Pr ° gramS tar § etin 8 San F ™ cisc ° Elementary and
Middle School children are filing the void left by severely reduced or eliminated ^ts
ESSX^ SCh0 ° IS - t C0I | dUCted b> ' ^ C °™^ The - £ C " SSn.
after! hi; Pr0gr r S mke PhCe throu § hout the City, and facilitate much needed
San Fr nc 1Vltl6S f nSUre Pr ° dUCtiVe and P ° Sltive °PP^nities for the children of
o ft^r W ° rklng Par£ntS - Gt >' *»<""« -11 ensure the continued existence
v-supreq.wpd (January 22, i 9 o 9J p a o e 4 Q f 5
17
Attachment I
rage 2 of 2
THEATRE CENTER OVERVIEW — YOUTH PROGRAMS
Youth Scholarship & Vocational Training/Employment Procram for Citv Youth
Our Youth Scholarship and Vocational Training/Employment Programs are designed to
provide young people with unique life skill learning experiences as students and as paid
interns. The Youth Scholarship Program provides low-income kids ages 6-18 with
financial aid enabling them to attend after-school and weekend arts training programs.
The New Conservatory Theatre Center school-year and summer programs serve
approximately 400 youth annually. The Vocational Training/Employment Programs
teenage students "leam while they earn" minimum wage in areas that support the New
Conservatory Theatre Center Training and Production Programs. 10 Youth are employed
annually. City funding will also provide support for the ongoing New Conservatory
Theatre Center youth arts training scholarships and employment programs.
v-supreq.wpd [January 22, 1999] Page 5 Of 5
Attachment II
City & County of San Pranciseo
I99?-99 Municipal Budget Line Item Request
Mew Conservatory Theatre Center $150,000 Supplemental Lihe Item Budget Request
Personnel:
Salaries:
Executive Director
Conservatory Director
Education Coordinator
Business Manager
Actors
Youth Interns
HIV Educator
Stage Manager
Stage Director
Teachers
Technicians/Stage Crew
Designers
15% of Salary
25% of Salary
25% of Salary
10% of Salary
Subtotal
$8,445
6,500
4,500
2,000
5,750
6,000
3,750
2,000
1,500
8,250
2,000
1,500
52,195
Payroll Taxes
Health Insurance
Workers' Comp Insurance
7,829
2,610
1,566
Total Salaries/Benefits
64,200
Expenses:
Facility Rent
Production
Touring Vehicles
Printing/Promotion
Royalties
Insurance
Postage
Telephone
Scholarships
(Sets, lights, costumes, etc)
Total Expenses
GRAND TOTAL
40,000
12,000
5,000
10,000
1,000
1,300
2,500
3,000
11,000
85.800
$150,000
39
THE WEW CONSERVATORY THEATRE CEMTER
DESCRIPTION
BUDGET
98-99
Attachment III
?a°e 1 ot 2
INCOME:
TUITION - REGULAR
TUITION -SUMMER
BOX OFFICE-SINGLE
BOX OFFICE-SUBSCRIBERS
CONCESSIONS
UNDER ONE ROOF
ROYALTIES
CONTRIBUTIONS-INDIVIDUALS
CONTRIBUTIONS-FOUNDATIONS
CONTRIBUTIONS-CORPORATIONS
CONTRIBUTIONS-CLUBS & ASSOC.
CONTRIBUTIONS-FEDERAL
CONTRIBUTIONS-STATE
CONTRIBUTIONS-CITY
SCHOLARSHIPS/INTERNS
SPECIAL EVENTS
BOARD DONATIONS
FACILITY RENTAL-MONTHLY
FACILITY RENTAL-PRODUCTIONS
INTEREST
TOTAL INCOME
EXPENSES:
SALARY-EXECUTIVE DIRECTOR
SALARY-EDUCATIONAL PROG COORD
SALARY-TEACHERS
SALARY-CONSERVATORY DIRECTOR
SALARY-RESIDENT DIRECTOR
SALARY-AUDIENCE DEVELOPMENT
SALARY-TECHNICAL DIRECTOR
SALARY-BOX OFFICE MANAGER
SALARY-BOX OFFICE ASSISTANT(S)
SALARY-HOUSE MANAGER
SALARY-TECHNICAL ASSISTANT
SALARY-JANITORIAL
SALARY- ACTORS
SALARY-TOUR TECHNICIANS
SALARY-AIDS EDUCATOR
SALARY-STAGE MANAGERS
SALARY-STAGE CREWS
SALARY-TOUR DIRECTOR
TOTAL SALARIES
$ 45,
000
35,
000
000
25,
oco
18,
000
4,
000
2,
500
25,
000
135,
000
"70,
000
000
12,
500
3,
500
54,
000
10,
000
7,
000
4,
500
40
000
55,
000
2
500
$735
5C ]
S 56
000
18
000
15
000
26
000
l -7
000
25
000
29
000
22
500
000
10
,000
12
,500
3
,000
31
,500
3
,000
3
,500
7
,500
3
,000
5
'-
300,000
40
THE NEW CONSERVATORY THEATRE CENTER
DESCRIPTION
PAYROLL TAXES
INSURANCE-HEALTH
INSURANCE-W/C
TOTAL SALARIES & BENEFITS
FRISCO COMMUNICATIONS/MARKETING
PUBLICIST
Dl RECTOR (S)
COSTUME DESIGNER(S)
SCENIC DESIGNER(S)
SOUND DESIGNER(S)
LIGHTING DESIGNER(S)
CATERING
LOAD-IN CREWS
PLAYWRIGHTS/ROYALTIES
BUSINESS MANAGER
AUDIT
TOTAL CONSULTANTS
RENT
TOUR VEHICLE RENTAL
STAFF DEVELOPMENT
PRODUCTION
SUPPLIES
GALLERY INSTALLATIONS
PRINTING & PROMOTION
TELEPHONE
TRAVEL
MEMBERSHIP/PUBLICATIONS
PAYROLL PROCESSING
POSTAGE
INSURANCE
CONCESSIONS
UNDER ON ROOF
FACILITY-MAINTENANCE
BANK CHARGES
DEPRECIATION
DEVELOPMENT FUND
SCHOLARSHIPS/INTERNS
TOTAL G&A EXPENSE
TOTAL EXPENSE
NET INCOME (LOSS)
Attachment III
Page 2 of 2
BUDGET
98-99
35,
000
7,
155
2,
500
345,
655
6,
000
6,
000
5,
000
2,
600
3,
000
100
2,
000
1,
500
2,
000
8,
000
19
000
2,
800
55
000
157
989
A
000
2
000
35
000
15
000
500
35
000
6
500
6
000
600
000
8
500
6
316
7
000
1
500
1
500
3
500
6
600
3
750
10
000
313
255
716
910
$18
590
41
NEW CONSERVATORY THEATRE CENTER
Income Statement-Consolidated
February 1999
Attachment
Page 1 of 2
Ordinary Income/Expense
Income
Tuition
Tuition -Regular
Tuition -Satellite
Total Tuition
Special Events
Gross Box Office
Box Office-Single
Box Office-Subscriber
Total Gross Box Office
Under One Roof-Income
Program Ads
Concessions-Income
Royalties -Income
Contributions
Individuals
Foundations
Corporations
Associations
State
City
Board Donations
Scholarship Income
Total Contributions
Facility Rentals
Monthly
Night Use
Total Facility Rentals
Total Income
Expense
Salaries
Executive Director
Conservatory Director
Teachers
Resident Director
Educational Program Director
Audience Development
Technical Director
Box Office Manager
Box Office Assistant(s)
House Manager
Janitor
Actors
AIDS Educator
Stage Manager
Stage Crew
Director
Lighting Technician
Costume Designer
Total Salaries
Payroll Taxes
Consultants
Publicist
Scenic/Sound Design
Catering
Graphics/Marketing
Photograher
Business Manager
Auditor
Feb 99
Sep -98 - Feb -99
6,696
30.134
1 033
7.729
5.262
35.396
11.547
22.304
102.735
2 304
4.600
2
107.335
660
1.030
2.553
10.962
64
209
80
3475
15.000
1.000
6.000
150
1.432
5.241
5.241
4000
750
6.440
1.900
1.900
41.021
42 338
16.675
28.197
44.673
254 349
6462
28.000
3.000
13.000
1.877
7,165
1.962
8.500
2.077
6654
2.785
11 919
3.346
14.500
2.596
11.250
1 632
7.528
1.080
3,786
720
2.920
4025
13.220
275
1 464
400
3.288
717
566
3,341
577
1.679
32.802
141.508
3.043
12232
460
3.110
300
1.230
235
647
2.933
462
2.181
2.228
8.382
2.800
2.800
42
NEW CONSERVATORY THEATRE CENTER
Income Statement-Consolidated
February 1999
Attachment IV
Page 2 of 2
Total Consultants
Rent
Tour Vehicle
Staff Development
Production
Royalties
Office Supplies
Printing and Reproduction
Postage and Delivery
Telephone
Travel
Dues and Subscriptions
Payroll Processing
Insurance
Vehicle Insurance
Liability Insurance
Health
Workers' Comp
Total Insurance
Concessions
Under One Roof
Facility Maintenace
Bank Service Charges
Depreciation Expense
Development Fund
Scholarship
Total Expense
Net Ordinary Income
Other Income/Expense
Other Income
Interest Income
Other Income
Total Other Income
Other Expense
Other Expenses
Returned Box Office
Total Other Expense
Net Other Income
Net Income
Feb -99
Sep*98
- Feb "99
6,484
21,284
13.400
77,972
288
1.537
35
235
926
14,121
1,613
8,279
143
1,551
3,138
17,377
785
3,485
685
3,991
658
7,114
154
822
417
1,237
104
626
336
3,535
871
4,437
575
575
1,886
9,173
706
5,483
216
200
33
5,853
550
3,300
144
1,524
67,748
338.636
(26,726)
(84,288)
37
841
96
37
936
64
64
37
872
(26.690)
(83.416)
A3
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
Item 9 - File 99-0872
Department: Police (SFPD)
Item: Supplemental Appropriation from the General
Fund Reserve to provide additional funds for a) Workers'
Compensation, b) installation of a "Bullet Trap" facility
for the Police Crime Laboratory and c) funds for the
''Peaceful Streets Program".
Amount: $889,000
Source of Funds: General Fund Reserve
Description: A summary budget for the SFPD's proposed
Supplemental Appropriation is shown in the table below:
Services of Other Departments - Workers' Compensation $ 519,000
Project Budget ("Bullet Trap" - Crime Lab; Lead Abatement
at the former Crime Lab in the Hall of Justice) 350,000
Professional Sendees ("Peaceful Streets Program") 20.000
Total $ 889.000
Workers' Compensation (S519.000) : On May 3, 1999,
the Controller issued his Nine-Month Budget Status
Report. This report highlighted General Fund Workers'
Compensation costs as an area of budgetary concern. The
Controller's projection showed that actual Workers'
Compensation spending was estimated to exceed
budgeted expenditures by $4.9 million for several General
Fund and General Fund subsidized Departments.
However, according to the Controller, all departments
with the exception of the Police Department were
projected by the Controller to have budget savings to
offset such overspending for Workers' Compensation. This
request is to fund the SPFD's projected Workers'
Compensation deficit of $519,000. An analysis of the
projected shortfall is as follows:
FY 1998-99 SFPD Workers' Compensation Budget $5,463,000
FY 1998-99 Actual Expenditures through 9 months 4,825,000
Projected 12 Month Expenditures 6,430.000
Projected Expenditures less Budget 967,000
Less Airport Police Costs (448.000)
Projected Deficit $519,000
BOARD OF SUPERVISORS
BUDGET ANALYST
44
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
In June, 1998, during the Finance Committee's FY 1998-
99 Annual Budget Review, the Budget Analyst reported
that appropriations for Workers' Compensation in the
Mayor's Recommended FY 1998-99 Budget appeared to be
adequately funded, in relation to projected actual
expenditures through the first nine months of FY 1997-
98. However, actual spending for FY 1997-98 turned out
to be considerably higher during the last three months of
the 1997-98 Fiscal Year, and higher spending rates have
continued during Fiscal Year 1998-99.
"Bullet Trap" - Crime Lab: Lead Abatement at the former
Crime Lab in the Hall of Justice ($350.000) :
The SFPD is in the process of completing the conversion
of the Department's new Crime Lab at Building 606 in the
Hunters Point Naval Shipyard. The final component is
scheduled to be the installation of a bullet recovery tank
otherwise known as a "Bullet Trap". This equipment is
used to safely test firearms for forensic purposes. Funds
for the installation of the Bullet Trap in the amount of
$300,000 are required so that the Bullet Trap can be
placed in an enclosed room with a special ventilation
system. In addition, $50,000 is required for Lead
Abatement work at the former Crime Lab in the Hall of
Justice.
Attachment 1 to this report provides the Department of
Public Works. Bureau of Architecture's $300,000 budget
for the construction, to be done by existing DPW staff, of
an enclosed room with a special ventilation system at the
Building 606 Crime Lab. Attachment 2 details the SFPD's
estimated cost of $40,000. or $10,000 less than the
requested amount of $50,000, for Lead Abatement work at
the former Crime Lab in the Hall of Justice, based on
information from the Department of Public Health-
Environmental Health Program. The work would be
performed by either DPW employees or existing DPW
hazardous waste cleanup contractors. The former Crime
Lab space used for the bullet recovery tank will be
vacated as soon as the new Bullet Trap is ready at the
new Crime Lab. Since this space, located in the basement
of the Hall of Justice will be used for other purposes, lead
BOARD OF SUPERVISORS
BUDGET ANALYST
45
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
contamination resulting from its use as a bullet recovery
tank must be removed in accordance with Occupational
Health and Safety (OSHA) and DPH regulations.
Peaceful Streets Program ($20.000) : Peaceful Streets is a
San Francisco Non-Profit Corporation that conducts gun
awareness and education programs in a) San Francisco
public schools, b) Recreation and Park youth programs
and, c) Boys and Girls Clubs in San Francisco. The
program is designed to inform children of the hazards of
guns and teach them how to avoid contact with guns.
Peaceful Streets also accepts tax deductible donations of
guns for its "Guns to Art" program, where donated guns
are melted down and made into art.
Peaceful Streets proposes to conduct approximately 290
gun awareness and education classes at a cost of $69 per
class, or a total of $20,000. The $69 unit price consists of
teacher salaries ($39) materials and supplies ($9);
supervision ($12.50) and benefits and taxes ($8.50). Each
class takes approximately 3.5 hours of preparation,
supervision and class time, or an estimated total of 1,015
hours. Therefore, the average hourly rate for this program
is $19.70 ($20,000 divided 1,015 hours).
According to Mr. John Ricker, Executive Director of
Peaceful Streets, Peaceful Streets is the only organization
presently providing this service in California. Therefore,
the proposed contractor was selected on a sole source
basis.
Comment: The Controller's latest expenditure projections for the
SFPD estimates a surplus in salaries and fringe benefits
of $296,687 based on spending through the pay period
ending on April 16, 1997. However, this projected surplus
is expected to decline due to the anticipated high cost of
special events subsequent to April 16, 1997 such as Cinco
de Mayo and the Bay to Breakers race. Therefore, the
Budget Analyst does not recommend any reduction to this
proposed supplemental appropriation based on the
availability of funds indicated in the Controller's projected
surplus as of April 16, 1997.
BOARD OF SUPERVISORS
BUDGET ANALYST
46
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
Recommendations: 1. Based on the revised estimate of $40,000 for the Lead
Abatement work at the former Crime Lab in the Hall of
Justice, instead of the original request of $50,000, amend
the proposed ordinance to reduce the $350,000 request for
the Bullet Trap Project Budget by $10,000 to $340,000.
This will reduce the total $889,000 amount requested by
$10,000 to $879,000.
2. Approve the proposed ordinance as amended.
BOARD OF SUPERVISORS
BUDGET ANALYST
47
Attachment 1
Page 1 of 2
SFPD Crime Lab - Bullet Trap Room
PROPOSED BUDGET
PROPOSED BUDGET
1. CONSTRUCTION, PURCHASE, & INSTALLATION
Includes construction contract, construction contingency; and fixed equipment
2. PROJECT RESERVE
Project contingency for unforseen conditions.
3. DPW PROJECT MANAGEMENT
Management of the proiect scope, schedule and budget from inflation to post-construction; monitoring of project
funds, revenue and expenditures; management of design and construction contracts; appropnations assistance,
and reporting to Client.
4. ADDITIONAL MANAGEMENT SERVICES
Developing project scope, schedule and budget for initial appropnation.
1.480
5. CITY ADMINISTRATIVE SERVICES 0.0%
Financial and legal counsel for construction contract support
6. REGULATORY AGENCY APPROVALS 4,000 1.8%
Planning Dept.. Building permit, and other fees;
7 BASIC ARCHITECTURAL/ENGINEERING SERVICES 34,937 15.7%
Architectural, structrual. mecnanical and electncal engineenng services for contract documents, and construction
phase services.
8. SUPPLEMENTAL A/E SERVICES 8,849 4.0%
Additional architectural and engineenng services including site and utility assessments; existing conditions
assessments and documentation, and post construction services
9. CONSTRUCTION MANAGEMENT & RELATED SERVICES 20,133 9.1%
Includes basic CM services as well as construction contract preparation; inspection for compliance with contract
documents, schedule reviews and confirmation of proposal requests
10. OWNER FURNISHED DATA, SURVEYS 0.0%
Includes hazardous matenals surveys and reports, existing materials testing for structural integnty, site surveys
for design.
11. TOTAL PROJECT BUDGET 300,000 135.2%
The figures listed above are budgetary assumptions for the purpose of appropnation. These items represent typical project costs based
upon previous project expenence and are included for discussion and consideration. They are predictions of expenditures by category,
actual costs will be managed jointly by the Client Department and the Department of Public Works. Questions regarding this budget
should be directed to Edgar Lopez, Project Manager. DPW. @ 557-4675.
Bureau of Architecture
Page i
48
Attachment 1
Page 2 or 2
Detailed Budget
Job No:
TBD
REVISED
March 25. '99
Project:
SFPD Crime Lab - Bullet Trap Room
BUDGET
Building 606
1
(May '991
Hunter's Point Shipyard J
1
TOTAL PROJECT BUDGET
300.000
1
1 1 1
1. CONSTRUCTION. PURCHASE. & INSTALLATION
221.760
I i I
1.0 CAPITAL IMPROVEMENTS
221.760
! ' '
1
1.11 Principal Construction Contract
221.760
1 1 1
|1.1.1 (Construction Contract Award Amount
201 600 1
1 III
|1.1.2 (Construction Contract Contingency
20.354
1 1
2. PROJECT RESERVE
1 1 1 1 1
1 2 . 1 .3 |Proiect Reserve
1 1 1 1 1
1 1 1
weeks lempioyeei Ihrs.week Irate | Total IToial Hrs
3. DPW PROJECT MANAGEMENT
8.646
1 1
ss
13.1.2 IProiect Management
5.170
18
1 4
85.7
-: -70
72
13.1.3 I Planning and Control
2 475
12
1
4
51 61 2.475
48
1 1 i
4. ADDITIONAL MANAGEMENT SERVICES
1.480
1
|4.1.3 |Proqramminq & Planning
•,.480
'
11 201 74
1.480 1 20
I
6. REGULATORY AGENCY APPROVALS 4.000
16.1.1 IDBI Plan Check and Permit 4 000
Cost included in construction cost I
III! 1
1 III
7 BASIC ARCHITECTURAL/ENGINEERING SERVICES 34.937
Weeks lernploveei hrs week Irate i Total
Total Hrs
7.1 Basic A/E Design Services 25 055
1 1 i
17.1.1 |Basic Architectural Design 7.106
6i 11 1 6 1 74| 7.106
96
7.1.2 |Basic Structural Engineering Design
7.106
61 161 74| 7,106
96
7.1.3 |Basic Mechanical Engineering Design
7.106
61 161 74| 7.106
'■-'
|7.1.4 |Basic Electrical Engineering Desian
4.737
41 1 1 161 74| 4.737 | 54
1 1 1 1 1
1 26.055 1
17.2 Basic A/E Construction Services 1 S82
1 II 1
17.2.1 (Basic Architectural Const. Administration
3.553
121 4| 741 2.553 1 48
1 7 . 2 .2 |Basic Structural Engineering Const. Administration
1.776
61 "I 4| 741 1.776 | 24
I7.2.3 |Basic Mechanical EnoineerinQ Const. Administration| 1.776
61 4| 741 1.776 1 24
|7.2.4
Basic Electrical Engineering Const Administration | 1.776
51 4| 74| 1 .776 | 24
7.2.5
Contingencv
8.882 1
I I
8. SUPPLEMENTAL A/E SERVICES 8.849
i :
18.1.1 |Misc. /Other Additional A,E Services
! 1 1 1 i
18.1.2 | Facilitv Assessments Site and Utility Studies
01 21 201 741 -
1 8. 1 .3 (Investigate Exist. Cond./ Measured Drawinas 1 480
" i 201 741 1.480 1 20
J8.1.10 IDetailed Cost Estimates 5.000
1 ILump sum (consultant teei : Z'jZ
J8.1 .1 1 JExtended Services: 60 Davs After Subst. Compl. 2.369
41 81 74J 2.369 1 32
|8.1 .1 2 |Post-Construction Services Warranty Work
81 741
III 1
8.849 I
1 1 1
1 1 1
9. CONSTRUCTION MANAGEMENT & RELATED SERVICES 20.133
1
9.1.1 iMisc. /Other Construction Manaaement 1.480
10 " 21 741 1 480 I : -
9.1.2 IContract Preparation ' "t
24 74| 1 .~76 I 24
19.1.5 IConstruction InsDectior f, Mar.a;?^.;".- 14,212
•2' 1i 161 74 "4 2" 2 1 '52
19.1.6 IMatenals Testina and Inspection ".7761 '2 2! 74] 24
19.1.7 ICertified Pavroll and Emolovment Goals Momtorma 1 388U - Z 1 1 74 888 i 12
1 1 20.133 1
I This project budget does NOT include furniture procurement nor installabon A
10. OWNER FURNISHED DATA. SURVEYS OJj
|l0.1.2 lHazardous Materials Assessment OlSoHs investigation, report, ana founcaticr recomedaq
1 1
11. TOTAL PROJECT BUDGET 300.000lj 1046
Page 1
U9
Attachment 2
Memorandum
San Francisco Ponce Department
To: Captain Alex Fagan
Fiscal Division
From: Martha Blake
Laboratory Manager
Date: Thursday, May 20, 1999
Subj: The Gun Room Clean-Up
YES NO
.□ □
.□ □
.□ □
An estimated cost for cleaning the gun room is $12,000. As part of the total job, we need
to have the vertical water bullet trap and support structure dismantled and removed. This
part of the job is difficult to cost-out because there is lead-co ntaminate d water in the tank
and the support is likely painted with a lead-base paint, making its removal more
problematic. The Department of Public Works is studying the job as well as a sub-
contractor (Safety Clean). New regulations affecting Department of Health certification
of the contractors doing the work are also being reviewed. An estimate for all additional
work needed to make the room ready for occupation is $28,000. bringing the total amount
needed to: $40,000
The contact person for this job is Steve Lowe, Department of Public Health, phone:
252-3977.
50
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
Item 10 - File 99-0936
Department: Human Resources Department (HRD)
Police Department
Item: The proposed ordinance would implement Amendment Number 3
to the Memorandum of Understanding between the San Francisco
Police Officers' Association and the City and County of San
Francisco to amend salary provisions for represented classes and
to authorize action to rectify prior retirement status for former
Airport Police Officers, effective July 1, 1999.
Description: The subject MOU with the San Francisco Police Officers
Association (POA) was approved by the Board of Supervisors
effective July 1, 1996. The term of the MOU is Fiscal Year 1996-
97 through Fiscal Year 2000-2001, or five years. This MOU
provided for salary increases for all Police Officers of 2.75 percent
annually for Fiscal Years 1996-97, 1997-98 and 1998-99. The
MOU also included language that the City and the POA agreed to
"reopen" the MOU to negotiate salary provisions for Fiscal Years
1999-2000 and 2000-2001. Lastly, Retirement Benefits were also
subject to reopened negotiations at any time.
This proposed amendment to the MOU with the POA would adopt
the following recommended salary increases for all uniform POA
members consisting of five classifications (Commander, Captain,
Lieutenant, Sergeant and Police Officer) covering 2,359
employees:
Effective July 1, 1999
Effective July 1, 2000
5Vi percent increase.
5% percent increase.
The cumulative impact of the consecutive annual salary increases
of 5/4 percent is a total increase in Police Officer salary levels of
11.3 percent over two years.
The Controller's cost estimate is shown in the Attachment to this
report. The Controller estimates that the first year incremental
cost of the proposed amendment to the MOU is $8,765,878 and
the second year incremental cost is $9,248,001. The total
cumulative cost above FY 1998-99 budgeted permanent uniform
salaries and related fringe benefits is therefore $26,779,758. The
Budget Analyst concurs with the Controller's estimate but notes
that the impact on Police Overtime costs is not included (see
BOARD OF SUPERVISORS
BUDGET ANALYST
51
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
below). By including Police Overtime costs at the budgeted
overtime costs in FY 1998-99, the cumulative cost over the two
years of FY 1999-2000 and FY 2000-2001 increases by $2,076,045
from $26,779,758 to $28,855,803.
Since the POA now represents both San Francisco Police Officers
and the Police Officers assigned to the Bureau of Airport Police,
the proposed salary increases will result in increased salary costs
and increased fringe benefit costs for both the General Fund and
the Airport Fund, as well as Work Order Funds.
The cost of the two year Police Officer salary increase, including
increased costs for Overtime salaries is shown below for the
General Fund, Work Order Funds:
Incremental Cost
FY' 1999-2000 FY' 2000-2001 Cumulative Cost
General Fund $8,555,670 $9,025,671 $26,137,011
Work Order Funds 96,378 102,679 295,435
Airport 793.243 836.871 2,423.357
Totals $9,445,291 $9,965,221 $28,855,803
As the Controller notes in the attached letter, his estimate is
based on budgeted positions and salary amounts for FY 1998-99.
The Controller adds that "To the extent that additional
unformed police positions are approved during the FY' 1999-2000
budget process, the City's costs under this amendment will
increase".
The proposed ordinance also states that the San Francisco
Employees Retirement System (EFIS) is authorized to effect all
necessary action to implement the adjusted corrected placement
by the State Public Employees Retirement System (PERS) of
covered members who were previously in Airport Police
classifications to an improved retirement benefit plan.
According to Ms. Clare Murphy, General Manager of the
Employee's Retirement System (ERS) Airport Police currently
can retire at the age of 50, and their annual retirement benefits
would equal 1.426 percent of their final annual compensation
times the number of years they were members of PERS. At age
55 or over, such employees can receive 2.0 percent per year of
their final annual compensation times the number of years they
were members of PERS.
BOARD OF SUPERVISORS
BUDGET ANALYST
52
Memo to Finance Committee
May 26, 1999 Finance Committee Meeting
The improved PERS benefit plan would provide employees who
retire at age 50 with an annual retirement benefit of 2 percent
instead of 1.426 percent, of their final annual compensation
times the number of years they were members of PERS. At age
55 or over, the improved PERS benefit plan would enable such
employees to receive the maximum benefit of 2.7 percent,
instead of 2 percent per year of their final compensation times
the number of years they were members of PERS
According to Ms. Alice Villagomez, Deputy Director of Human
Resources, Airport Police Officers, who are members of the
PERS Public Safety retirement program (authorized by Charter
Section A8. 506-2) have been mis-classified by PERS as members
entitled to "two percent at age 55" instead of "two percent at age
50" under the contract between the City and PERS. This
provision of the proposed ordinance would instruct the ERS and
the City Attorney to initiate a contract change with PERS,
subject to future legislative approval by the Board of
Supervisors, that would retroactively increase Airport Police
Officer retirement benefits. The improvement to the Airport
Police Officer retirement benefits would be consistent to
improvements granted by a Charter Amendment in November,
1998 for Police Officers who are Tier 2 members of the City's
ERS (Police Officers hired after November, 1976). Under
Charter Section A8. 506-2, such amendments to the City's
contract with PERS cannot result in increased costs to the City
than would be incurred if Airport Police Officers were members
of the ERS.
Prior to Board of Supervisors approval of any amendment to the
PERS contract, PERS would provide the City with an actuarial
report certifying the required rates of contribution for the
improvement in retirement benefits for the Airport Police. This
actuarial report will provide the City with the information
needed to evaluate the increased cost, if any, from the
retirement benefit improvement.
Recommendation: Approval of the proposed ordinance is a policy matter for the
Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
53
'A CITY AND COUNTY OF SAN FRANCISCO
ftitacnment
Page 1 ot 2
OFFICE OF THE CONTROLLER
Edward Hamngion
Controller
Jo im W. Madden
Chief .Assistant Controller
May 21, 1999
Ms. Gloria L. Young. Clerk of the Board
Board of Supervisors
City Hall, Room 244
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94 1 02
RE: Amendment to the Memorandum of Understanding with the San Francisco
Police Officer's .Association
File No. 99-0936
Dear Ms. Young:
In accordance with Ordinance 92-94, I am subinrtting a cost analysis of an amendment to Memorandum of
Understanding between the City and County of San Francisco and the San Francisco Police Officer's
Association. The amendment' covers the period July 1, 1999 through June 30, 2001, and affects
approximately 2,359 employees with a salary base of approximately $146 million.
Based on our analysis, the amendment will result in incremental costs of approximately S8.8 milli on in FY
1999-2000, and $92 million in FY 2000-2001. The amendment will result in a cost increase of
approximately 6% above base salaries in each fiscal year. Please see Attachment A for specific cost
estimates.
Our estimate of costs is based on budgeted positions and salary amounts for FY 1998-99. To the extent
that additional uniformed police positions are approved during the FY' 1999-2000 budget process, the
City's costs under this amendment will increase.
If you have any additional questions or concerns please contact John Madden at 554-7500.
Sincerely,
■ — -Edward M. Harrington
Controller
cc: Vicki Rambo, ERD
Harvey Rose, Budget .Analyst
Cny IUD • I Dr. Ctrttoe R. Goodktt Place - Rooos 516 • San Francisco CA 94102-469*
FAX «lS-55*-746<
54
Attachment A
San Francisco Police Officer's Associaton
Estimated Costs 1999-2000 to 2000-2001
Controller's Office
Attachment
Page 2 of 2
Annual Incremental Costs/fSavinqsl
Wage Increase
55% on July 1.1999
5.5% on July 1,2000
Wage-Related Fringe Increases
FY 1999-2000 FY 2000-2001
S8.033.246
732.532
S8.475.075
772.927
Total Estimated Incremental Costs
Annual Amount Above 1998-99 Level
Cumulative Total Above 1998-99 Provisions
Incremental Cost % of Salary Base
8.765.878
8,765,878
6.00%
9248.001
18,013.880
S26.779.758
600%
55
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 11-99-0913
Department:
Item:
Department of Human Resources (DHR)
Ordinance implementing Amendment No. 2 to the
Memorandum of Understanding (MOU) between the
Laborers Union, Local 261 and the City and County of
San Francisco.
Description:
In May of 1997, the Board of Supervisors approved an
ordinance (File No. 93-97-20) to extend the term of an
existing MOU with the Laborers Union, Local 261 for the
four-year period from July 1, 1997 through June 30, 2001.
The subject MOU includes the following 22 classifications,
covering a total of approximately 918 employees.
Classifications
Emrjlovee Titles
3402
Farmer
3417
Gardener
3418
Gardener Assistant Supervisor
3419
Municipal Stadium Groundskeeper
3422
Park Section Supervisor
3424
Pest Control Specialist
3428
Nursery Specialist
3430
Chief Nursery Specialist
3432
Assistant Director
3434
Tree Topper
3436
Tree Topper Supervisor I
7215
General Laborer Supervisor I
7220
Asphalt Finisher Supervisor I
7246
Sewer Repair Supervisor II
7281
Street Cleaning Supervisor II
7404
Asphalt Finisher
7421
Sewer Maintenance Worker
7258
Switch Repairer
7501
Environmental Service Worker
7502
Asphalt Worker
7514
General Laborer
7540
Track Maintenance Worker
Currently, Article III.K of the MOU contains the salary
step advancement provisions for all classifications covered
BOARD OF SUPERVISORS
BUDGET ANALYST
56
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
by this MOU, except Classification 7501, Environmental
Service Worker. According to Ms. Alice Villagomez of the
Department of Human Resources (DHR), because
employees in Classification 7501, Environmental Service
Worker are provisional appointments (provisional
appointments are made when there is no list of eligible
applicants available for appointment to permanent
positions), such employees cannot receive salary step
increases, unless such increases are specifically approved
by the Board of Supervisors.
According to Ms. Villagomez, there are currently no
salary step advancement provisions for the employees in
provisional appointments to Classification 7501,
Environmental Service Worker. Attachment I, provided
by Ms. Villagomez, explains that the proposed
Amendment No. 2 would establish such salary step
advancement provisions. In Attachment I, Ms.
Villagomez states that "The proposed amendment to the
MOU between the City and Laborers', Local 261 is
intended to provide the mechanism by which employees,
employed in Class 7501 Environmental Service Worker
can advance and progress through the salary steps of the
class based on upon the level of participation in the
trainee program (for Classification 7501, Environmental
Service Worker)."
Ms. Villagomez reports that there are currently 18
employees in Classification 7501, Environmental Service
Worker. All 18 of these employees are provisional
appointments. Under the subject proposed Amendment
No. 2, the 18 employees would be placed at the step of the
salary schedule which corresponds to their current length
of service within the 72-week trainee program for
Classification 7501, Environmental Service Worker.
In addition, under the subject proposed Amendment No.
2, employees in Classification 7501, Environmental
Service Worker would advance to the next step of the
salary schedule upon completion of 12 weeks of
continuous service within the trainee program.
Therefore, such employees would reach the sixth and final
step of the salary schedule upon completion of the 72-
week trainee program.
BOARD OF SUPERVISORS
BUDGET ANALYST
57
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Comment: Attachment II is a memorandum containing the
Controller's cost analysis of the proposed ordinance. As
reflected in Attachment II, the Controller estimates that
this ordinance would result in increased additional costs
of approximately $27,000 in FY 1999-2000. Ms. Peg
Stevenson of the Controller's Office advises that such
costs to the City would also be approximately $27,000 in
FY 2000-2001. The Budget Analyst concurs with this
estimate.
Recommendation: Approval of the proposed ordinance is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
5B
MPY 19'99 18:07 FR
4 15 55? 4919 to 9E52046 1 Attachment I
City and County of San Francisco
May 19, 1999
TO:
FROM:
RE:
Department of Human Resources
ANDREA R. GOURDINfc
HUMAN RESOURCES DIRECT '..R
Harvey Rose
Budget Analyst, San Francisco Board of Supervisors
Alice Villagomez ;V
Deputy Director, ERD
Department of Human Resources
File No. 99-09-13
The proposed amendment to the MOU between the City and Laborers', Local 261 is
intended to provide the mechanism by which employees, employed in Class 7501
Environmental Service Worker can advance and progress through the salary steps of the
class based on upon the level of participation in the trainee program.
Employees hired into class 7501 are pro\isional employees during their participation in
the trainee program that is a transitional program which provides for the development of
work skills to be better qualified for permanent employment in positions such as laborer
Currently, as provisional employees, incumbents are not eligible to progress through the
salary steps of the class.
This amendment will also provide for the placement ar the corresponding step within the
salary range of the class of employees already participating in the program to be credited
with their time served to date in the program.
44 Gough StrMt • San Francoco. CA 94103-1223
59
i\ CITY AND COUNTY OF SAN FRANCISCO
OFFICE OF THE CONTROLLER
Edward Harrington
Controller
John W. Madden
Chief Assistant Controller
May 21, 1999
Ms. Gloria L. Young, Clerk of the Board
Board of Supervisors
City Hall, Room 244
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 941 02
RE: Amendment to the Memorandum of Understanding with Laborers Local 261
File No. 99-0913
Dear Ms. Young:
In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to Memorandum of
Understanding between the City and County of San Francisco and Laborers Local 261 . The amendment
covers the period July 1, 1999 through June 30, 2001, and affects approximately 18 employees with a
salary base of approximately $300,200. Based on our analysis, the amendment will result in incremental
costs of approximately $27,000 in FY 1999-2000.
If you have any additional questions or concerns please contact John Madden at 554-7500.
Sincerely,
iward M Harrington
Controller
Vicki Rambo, ERD
Harvey Rose, Budget Analyst
City Hall * 1 Dr. Carlton B. Coodictt Place • Room 316 - San Francisco CA M102-4694
FAX 415-S54-7466
60
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 12 - 99-0914
Department:
Item:
Description:
Department of Human Resources (DHR)
Ordinance implementing Amendment No. 1 to the
Memorandum of Understanding (MOU) between the
Building Material and Construction Teamsters, Local 216
and the City and County of San Francisco to correct
clerical errors of omission by adding (1) Article III.F,
providing for a minimum period of time and rate of pay
for certain overtime assignments, (2) Article III.O,
incorporating any rule changes made by the City's
Retirement Board regarding the crediting of accrued sick
leave for retirement purposes by reference to the City's
Charter, and (3) Article IV.G, providing for City
contributions to the Employee Tuition Reimbursement
Program as set forth in the MOU effective July 1, 1999.
In June of 1998, the Board of Supervisors approved an
arbitration award (File No. 98-925) to extend the term of
an existing MOU with the Building Material and
Construction Teamsters, Local 216 for the three-year
period from July 1, 1998 through June 30, 2001.
According to Mr. Martin Gran of the City Attorney's
Office, an arbitration award was required because the
Teamsters, Local 216 and the City representatives could
not reach agreement on the provisions of the subject
MOU.
The subject MOU includes the following two
classifications, covering a total of approximately 157
employees.
Classifications Employee Titles
7251
7252
Truck Maintenance Worker Supervisor
Truck Driver
According to Ms. Alice Villagomez of the Department of
Human Resources (DHR), the following three provisions,
contained in Articles III.F, III.O and IV.G, were
"clerically omitted" from the MOU which was previously
approved by the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
61
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Comments:
Article III.F states that beginning on July 1, 1999, all
employees covered by the provisions of this MOU who are
pre-scheduled in advance to work overtime on a day off or
at a time that does not overlap with their regular shift
would be paid for a minimum of 4 hours at the overtime
rate of time and one half.
Article III.O states that any rule changes made by the
City's Retirement Board regarding the crediting of
accrued sick leave for retirement purposes shall be
incorporated into the subject MOU by reference to the
City's Charter. Ms. Villagomez explains that such rule
changes are first subject to an amendment to the City's
Charter, and then may be incorporated into the subject
MOU by reference to the City's Charter.
Article IV. G states that the City shall contribute annually
to the new Employee Tuition Reimbursement (ETR)
Program for employees covered by this MOU. Under this
ETR Program, the City would reimburse employees
covered by this MOU a maximum of $250 each fiscal year
for courses approved in accordance with the guidelines
established by DHR. According to the proposed
Amendment No. 1, the City would contribute $6,000 into
the ETR Program on July 1, 1999, and an additional
$3,000 on July 1, 2000. According to the proposed
ordinance, the three above-noted provisions would be
effective on July 1, 1999.
1. Attachment I is a memorandum, provided by Ms.
Villagomez, explaining how these three provisions where
"clerically omitted" from the subject MOU.
2. Attachment II is a memorandum containing the
Controller's cost analysis of the proposed ordinance. As
reflected in Attachment II. the Controller estimates that
this ordinance would result in increased additional costs
to the City of $6,000 in FY 1999-2000 and $3,000 in FY"
2000-2001 for the City's contributions to the Employee
Tuition Reimbursement Program. The Budget Analyst
concurs with this estimate.
Recommendation:
Approval of the proposed ordinance is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
62
MAY 21 '99 9 :4B FR
City and County of San Francisco
May 19, 1999
TO:
Harvey
Budget
FROM: Alice Yillagomez
Deputy
RE:
415 557 4919 TO 925204G1 Attachment I
Department of Human Resources
ANDREA R. GOURDWE
HUMAN RESOURCES DIRECTOR
Rose
Analyst, San Francisco Board of Supervisors
Director, ERD
Department of Human Resources
FilcNo. 99-09-14
The proposed amendment to the MOU between the City and the Building Materials and
Construction Teamstars, Local 216 will provide for the incorporation of tentative
agreements which were clerically omitted from the MOU. They were generally
referenced in the arbitration award issued by the arbitrator. These provisions, therefore,
would have otherwise become effective July 1, 1998.
The parties met to review the appropriate provisions needed to be added to the MOU.
These include, codifymg the practice of a four hour minimum for pre-scheduled overtime
assignments, incorporating by reference any rule changes by the Retirement Board if
there is a Charter change which permits the crediting of sick leave for retirement
purposes (this provisions is in numerous MOUs), and providing a fund for tuition
reimbursement for the term of the MOU.
44 Gough Mwt • San Fr*nci«co. CA W1 03- 1213
63
** TOTAL PAGE. 002 **
MAY-2B-99 lb: Jl J-Kun : ootir lun j. k u l i. e. k
% CITY AND COUNTY OF SAN FRANCISCO
hiLacnineni 11
OFFICE OF THE CONTROLLER
Edward Harrington
Controller
John W. Maddeu
Chief Assistant Controller
May 20, 1999
Ms. Gloria L. Young, Clerk of the Board
Board of Supervisors
City HalL Room 244
1 Dr. Carlton B. Goodlett Place
San Francisco, C A 94 1 02
RE: Amendment to the Memorandum of Understanding with Teamsters Local 16
File No. 99-0914
Dear Ms. Young:
In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to Memorandum of
Understanding between the City and County of San Francisco and Teamsters Local 16. The amendment
covers the period July 1, 1999 through June 30, 2001, and affects approximately 157 employees with a
salary base of approximately $8.3 million.
The amendment primarily corrects clerical omissions in the MOU and does not affect wage or fringe
benefit rates. However, the amendment does specify thai the City will make contribuhons to the
employee tuition reimbursement fund for this bargaining unit. As a result of this provision, the
amendment will result in incremental costs of $6,000 in FY 1999-2000 and $3,000 in FY' 2000-2001.
If you have any additional questions or concerns please contact John Madden at 554-7500.
Sincerely,
Iward M. Harrington
Controller
cc: Vicki Rambo, ERD
Harvey Rose, Budget Analyst
415-554-7500
City Hall • 1 Dr. Carlton B. Coodlcc Pl»« • Room 316 • S«o Fnocsco CK X102-46W
FAX 415-SS4--4U
64
Memo to Finance and Labor Committee
May 29, 1999 Finance and Labor Committee Meeting
Item 13 - 99-0915
Department:
Item:
Description:
Department of Human Resources (DHR)
Ordinance implementing Amendment No. 1 to the
Memorandum of Understanding (MOU) between the
International Brotherhood of Electrical Workers, Local 6
and the City and County of San Francisco.
In May of 1997, the Board of Supervisors approved an
ordinance (File No. 93-97-15) to extend the term of an
existing MOU with the International Brotherhood of
Electrical Workers, Local 6 for the four-year period from
July 1, 1997 through June 30, 2001. The subject MOU
includes 46 classifications, covering a total of
approximately 676 employees. Attachment I, provided by
DHR, contains a list of the 46 classifications covered by
this MOU.
Ms. Alice Villagomez of the Department of Human
Resources (DHR) advises that this proposed Amendment
No. 1 would provide for the consolidation of two existing
classifications, Classification 7379, Electrical Transit
Mechanic and existing Classification 7409, Electrical
Transit Service Worker, into one new Classification 7371,
Electrical Transit Mechanic, effective July 1, 1999.
Attachment II, provided by Ms. Villagomez, explains the
purpose of this consolidation of two existing classifications
into a single new classification. In Attachment II, Ms.
Villagomez states that "This amendment to the MOU
between the City and IBEW, Local 6 will provide for the
mechanism by which employees in new class 7371
Electrical Transit Mechanic will advance through the
appropriate salary steps of the class based upon a
demonstrated proficiency level attained, rather than
merely time served in grade."
According to Ms. Villagomez, there are currently 143
employees in Classification 7379, Electrical Transit
Mechanic and 50 employees in Classification 7409,
Electrical Transit Service Worker. All 193 of these
employees are Municipal Railway emploj'ees. The
biweekly cost to the City for an employee in Classification
7379, Electric Transit Mechanic ranges from $1,642 at
BOARD OF SUPERVISORS
BUDGET ANALYST
65
Memo to Finance and Labor Committee
May 29, 1999 Finance and Labor Committee Meeting
Step 1 to $1,994 at Step 5, while that cost for an employee
in Classification 7409, Electrical Transit Service Worker
ranges from $1,422 at Step 1 to $1,724 at Step 5.
However, according to Ms. Villagomez, the duties of these
two classifications are similar.
Under the proposed Amendment No. 1, the biweekly cost
to the City for an employee in the proposed new
Classification 7371, Electrical Transit Mechanic would
range from $1,642 at Step 1 to $1,994 at Step 5, the same
salary schedule as Classification 7379, Electrical Transit
Mechanic.
In addition, under the proposed Amendment No. 1, all
employees who are currently in Classification 7379,
Electrical Transit Mechanic and Classification 7409,
Electrical Transit Service Worker would be placed at Step
5 and Step 4, respectively, of the proposed salary schedule
for the new Classification 7371, Electrical Transit
Mechanic, except provisional employees who are currently
in Classification 7409, Electrical Transit Service Worker
with less than 6 months of continuous service. Such
provisional employees would be placed at Step 2 of the
proposed salary schedule for the new Classification 7371,
Electrical Transit Mechanic.
As noted above, employees in the proposed new
Classification 7371, Electrical Transit Mechanic would
advance through the appropriate salary steps of the class
based upon a demonstrated proficiency level attained,
rather than merely time served at each step. However,
under the proposed Amendment No. 1. if the Public
Transportation Department, which would adminrster the
proficiency examinations for this new classification, fails
to offer such examinations, employees in Classification
7371, Electrical Transit Mechanic would advance to the
next step in the salary schedule upon completion of a
minimum of 6 months of service at each step.
Comment: Attachment III is a memorandum containing the
Controller's cost analysis of the proposed ordinance. As
reflected in Attachment III, the Controller estimates that
this ordinance would result in increased additional costs
of approximately $392,000 in FY 1999-2000 and $10,600
BOARD OF SUPERVISORS
BUDGET ANALYST
66
Memo to Finance and Labor Committee
May 29, 1999 Finance and Labor Committee Meeting
in FY 2000-2001. The Budget Analyst concurs with this
estimate.
Recommendation: Approval of the proposed ordinance is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
67
MAY 18'99 9:26 FR
415 557 4919 TO 92520461
Attachment I
Page 1 of 2 '
C-i-1
Elcc^r.*C,^s Uc^l (e
ARTICLE I - REPRESENTATION
C^Trt 111 ° f 55^25? (hCTdnafiCr A**™*) « ^tcrcd into by the City and
County of San Francisco (hereinafter City) through its designated tmmJStmS^
L ^ts^^^
IA. RECOGNITION
&!!MbnS Jf^'f^B'othatood of Bectrical Workers Local Union
^ ?? . 6) " *" exdus,vc ^"^tative of all employees of the Ciw
and County of San Francisco assigned to Bargaining Unit 1-L including-
040l971»-fin
6248
6249
6250
6252
7214
7216
7229-
7235-
7238-
7244-
7253-
7255-
7256-
7257-
7273-
7274-
7275-
7276-
7279-
7285-
72S7-
7308-
7318-
7319-
7329-
7338-
7345-
7363-
7364-
- Electrical Inspector
- Senior Electrical Inspector
- Chief Electrical Inspector
- Line Inspector
- Electrical Transit Equipment Superintendent
- Electrical Transit Shop Supervisor I
- Transmission Line Supervisor I
- Transit Power Line Supervisor I
- Electrician Supervisor 1
- Power Plant Supervisor I
- Electrical Transit Mechanic Supervisor I
- Power House Electrician Supervisor I
- Electric Motor Repaid Supervisor I
- Communication Line Supervisor I
- Communication Line Worker Supervisor II
- Transit Power Line Worker Supervisor II
- Cable Splicer Supervisor I
- Electrician Supervisor H
- Powerhouse Electrician Supervisor II
- Tra nsmis sion Line Worker Supervisor II
- Supervising Electronic Maintenance Technician
- Cable Splicer
Electronic Maintenance Technician
Electric Motor Repairer
Electronics Maintenance Technician Assistant Supervisor
Electrical Line Worker ^^
Electrician
Power House Electrician
Power House Operator
Memorandum of Understanding/July 1, 1997 - June 30, 2001
Chy and County of San Franci' oand
Electrical Workers, Local 6 (1BEW)
1
68
10Y 18'99 9:2S FR
415 557 4919 TO 92520461
Attachment 1
Page 2 of 2~
e
LUcf>»cvc, Ai Lot<*[ (^
7365 - Senior Power House Operator
737)9 * Electrical Transit Mechanic
7380 - Electrical Transit Mechanic Assistant Supervisor
739p - Welder
7408 - Assistant Power House Operator
7409 • Electrical Transit Service Worker
7430 - Assistant Electronic Maintenance Technician
74312 - Electrical Line Helper
7480 - Power Generation Technician I
7482 - Power Generation Technician II
7484 - Senior Power Generation Technician
7488 - Power Generation Supervisor
7510 - Lighting Fixture Maintenance Worker
924 - Airport Electrician
9241 - Airport Electrician Supervisor
92^2 - Head Airport Electrician
9358 - Crane Mechanic Supervisor
and any and all employees assigned to new or different classifications hereafter who
perform work within the scope of work covered by this Agreement or are accreted
to bargaining Unit 1-L pursuant to the procedures of the Employee Relations
Ordinance
The work covered by and subject to the terms and conditions of this Agreement shall
be that work which upon execution of this Agreement is currently being assigned to
employees in Bargaining Unit 1-L in the c l a s s if ications heretofore enumerated and/or
claimed by IBEW Local 6.
LB. INTENT
This Agreement shall, to the extent its terms address a subject within the scope of
bargaining and arbitration pursuant to Charter Section 8.409 et seq. supersede and
prevail oyer any contrary ordinance, resolution, rule, charter provision and/or
regulation of any agency of the City and County of San Francisco, including the
Office of Ihc Mayor, the Board of Supervisors, City Departments and/or City and
County Boards or Commissions.
LC. NO WORK STOPPAGES
040197l5-fin
It is understood and agreed that during the term of this Agreement neither the Union
nor any person covered hereunder shall engage in a strike, slowdown or work
stoppage against the City and County of San Francisco, nor shall the Union or any
Memorandum of Understanding/Jury 1, 1997 - June 30, 2001
City and County of Sat. 'ranciscc jnd
Electrical Workers, Local 6 (IBEW)
2
69
MAY 19'99 19 :07 FR
Acuacnment l
415 557 4919 TO 92520461
City and County of San Francisco
May 19, 1999
Department of Human Resources
ANDREA R. GOURD4NE
HUUAN RESOURCES DIRECTOR
TO: Harveyj Rose
Budgei Analyst, San Francisco Board of Supervisors
FROM:
RE:
Alice Villagomez RY
Deputy Director, ERD
Department of Human Resources
File No. 99-09-15
This amendment to the MOU between the City and IBEW, Local 6 will provide for the
mechanism by which employees in the new class 7371 Electrical Transit Mechanic will
advance through the appropriate salary steps of the class based upon a demonstrated
proficiency level attained, rather than merely time served in grade.
This new class is being created as a result of a study of the job duties being performed by
employees in classes 17379 Electrical Transit Mechanic and 7409 Electrical Transit
Service Worker. While the salary of class 7409 is less than the salary of class 7379, the
duties being performed by employees in both classes were found to be very similar.
As such, it was determined to be appropriate to consolidate these classes into a new class
which in turn will provide for increased operational flexibility in meeting service needs
while compensating employees equally for similar duties performed.
I Googh StrM* • San Franci»co, CA 94103-1233
70
** TOTAL PAGE. 004 **
Attachment III
& CITY AND COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER
Edward Harrington
Controller
John W. Madden
Chief Assistant Controller
May 20, 1999
Ms. Gloria L. Young, Clerk of the Board
Board of Supervisors
City Hall, Room 244
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 941 02
RE: Amendment to the Memorandum of Understanding with IBEW Local 6
File No. 99-0915
Dear Ms. Young:
In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to Memorandum of
Understanding between the City and County of San Francisco and International Brotherhood of Electrical
Workers Local 6. The amendment covers the period July 1, 1999 through June 30, 2001, and affects
approximately 193 employees with a salary base of approximately $9-6 million.
Based on our analysis, the amendment will result in incremental costs of approximately $392,000 in FY
1999-2000 and $10,600 in FY 2000-2001. The amendment will result in a cost increase of approximately
4 % above base salaries in fiscal year 1999-2000.
If you have any a d ditional questions or concerns please contact John Madden at 554-7500.
Sincerely,
Iward M. Harrington
Controller
cc: Vicki Rambo, ERD
Harvey Rose, Budget Analyst
41S-SS4-7500 City Hall • I Dr. C»rltoo B. Goodlen Pl*« • Room 316 * San Fr»oci»co CA X102-44X FAX 415-SS4-7466
71
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 14 - File 99-0077
Note: This item was continued by the Finance and Labor Committee at its meeting
of February 3, 1999. This report is based upon a pending Amendment of the
Whole as reported to the Budget Analyst by the Department of Real Estate.
Departments:
Item:
Location:
Purpose of
Management
Agreement:
Owner:
Manager:
Term of Lease:
Square Footage:
Department of Real Estate (DRE)
Resolution authorizing and approving a new Management
Agreement for a cafe on the main floor of City Hall in the
North Light Court of City Hall between the City and
Events Management Inc., dba McCall and Associates.
Main floor in the North Light Court of City Hall at 1 Dr.
Carlton B. Goodlett Place
To permit operation of a cafe at City Hall (the "Light
Court Cafe") on the main floor of the building, in the
North Light Court.
City and County of San Francisco
Events Management Inc., dba McCall and Associates
("McCall and Associates")
Month-to-month, retroactive to January 4, 1999.
According to Mr. Steve Nelson, Director of Administrative
Services, the space under the proposed Management
Agreement consists of approximately 3,000 square feet on
the main floor of City Hall in the North Light Court.
Under the proposed Management Agreement the space is
to be shared by McCall and Associates and any other
catering services as authorized by the Department of
Administrative Services. The space consists of a seating
area accommodating at least 48 persons and counter
space for serving food and beverages. Additionally, a
catering support room behind the counter is used by
McCall and Associates. This catering room consists of an
additional 300 to 400 square feet, according to Mr.
Nelson. No doors, partitions, or locks separate the Light
Court Cafe from the rest of the North Light Court, which
covers 7,500 square feet.
BOARD OF SUPERVISORS
BUDGET ANALYST
72
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Rental Payments to be
made by McCall and
Associates to the City: Seven percent of gross revenue (no base rent would be
paid). According to Mr. Mark Zuffo of the Department of
Real Estate, McCall and Associates have paid the City
seven percent of its gross revenues on a monthly basis
since January 4, 1999. To date, McCall and Associates
have paid the City $1,716, in the following amounts:
Februarv 1999
$ 475
March 1999
350
April 1999
443
May 1999
448
Total
$1,716
Based on the payments above, to date McCall and
Associates have paid an average monthly rate of $429.
Utilities Provided
by City:
Janitorial Services
by McCall and
Associates:
Description:
The City will pay for all utilities.
McCall and Associates would be responsible for janitorial
services at the leased space.
Light Court Cafe Services and Operation
McCall and Associates has been operating the Light
Court Cafe in the subject space since January 4, 1999.
Currently, and under the proposed Management
Agreement with McCall and Associates, the Light Court
Cafe provides "upscale light faire food from behind the
historic counter" in the North Light Court, consisting of
coffee, espresso, pastries, juices, sodas, and beer and wine
after 5 p.m. No items are cooked on the premises, all
cooking and baking is performed off-site. Food and
beverages served within the space are required to be
served using china or glass utensils. The hours of
operation are 11:00 a.m. through 6:00 p.m.
BOARD OF SUPERVISORS
BUDGET ANALYST
73
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Differences Between the Light Court Cafe (on main
floor of City Hall) and the City Hall Cafe (on ground
floor of City Hall)
Currently, the Light Court Cafe operates on the main
floor of City Hall, and the City Hall Cafe operates on the
ground floor of City Hall.
According to Mr. Zuffo, although both cafes are open to
the public, the proposed Management Agreement with
McCall and Associates pertaining to the proposed Light
Court Cafe on the main floor of City Hall provides for a
more upscale cafe than does the previously approved
Management Agreement with L & L for the City Hall
Cafe, which is located in a larger area on the ground floor
of City Hall and which operates as a cafeteria.
Under Section 6.1 of the proposed Management
Agreement with McCall and Associates, the Light Court
Cafe would serve beer and wine after 5 p.m., which the
City Hall Cafe does not serve at any time. Also under
Section 6.1 of the proposed Management Agreement with
McCall and Associates, all food and beverages must be
served on china or glass utensils, and may not be served
using plastic flatware or paper plates, as are used in the
City Hall Cafe on the ground floor. Finally, under Section
6.2 of the proposed Management Agreement with McCall
and Associates, the Light Court Cafe must maintain the
hours of operation between 11:00 a.m. through 6:00 p.m.,
whereas the City Hall Cafe on the ground floor maintains
the hours of operation between 7:00 a.m. and 4:00 p.m.
Mr. Legnitto explains that a provision exists for McCall
and Associates to extend the hours of operation to after
6:00 p.m., which might be exercised in the future with
approval from the City Hall Building Manager, under the
Department of Administrative Sendees.
Utilization of Subject Space
According to Mr. Zuffo and Mr. Legnitto, under the terms
of the proposed Management Agreement, McCall and
Associates is required to purchase and pay for all
BOARD OF SUPERVISORS
BUDGET ANALYST
74
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
necessary equipment which it needs in order to operate
the Light Court Cafe. The DRE could not provide an
estimate of such equipment costs.
According to Mr. Zuffo, McCall and Associates currently
has two employees working at the proposed Light Court
Cafe. McCall and Associates is obligated under the
Management Agreement to properly staff the Light Court
Cafe.
Mr. Zuffo estimates that the current seating capacity in
the dining space of the Light Court Cafe is 48, but the
maximum number is under the control of the Building
Manager. Under the proposed Management Agreement,
McCall and Associates would be required to vacate both
the dining space and counter space when other catering
preparations for City Hall events, as authorized by the
Department of Administrative Services, are scheduled in
the subject area of the Light Court Cafe.
Comments: 1. Selection of McCall and Associates
According to Mr. Zuffo, on September 8, 1998, the DRE
sent out a Request for Proposals (RFP) to over 100 firms
for the management of the proposed Light Court Cafe and
the management of the City Hall Cafe. The RFP was also
advertised in various newspapers and periodicals.
Mr. Zuffo reports that written proposals for the
management of the Light Court Cafe were submitted by
only two firms in response to the RFP by the deadline of
September 25, 1998. According to Mr. Zuffo, these two
proposals were considered unacceptable by the Selection
Committee (composed of Mr. Zuffo, Mr. Nelson, and Mr.
Ben Rosenfield of the Mayor's Office) for the management
of the Light Court Cafe on the main floor of City Hall.
Subsequently, in an effort to provide for the Light Court
Cafe operation by January 4, 1999, the opening day of the
renovated City Hall, the Director of Property negotiated
and entered into the proposed Management Agreement
with McCall and Associates on a sole source basis, after
McCall and Associates contacted the Selection
BOARD OF SUPERVISORS
BUDGET ANALYST
75
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Committee. The Light Court Cafe is currently operated
by McCall and Associates.
The Attachment to this report, provided by Mr. Zuffo, is a
memo explaining why McCall and Associates was chosen
on a sole-source basis, without any further attempt at a
competitive bidding procedure.
2. McCall and Associates have occupied the subject space
since January 4, 1999. Therefore the proposed resolution
should be amended to provide for retroactivity.
Recommendations: 1. Amend the resolution to provide for retroactivity.
2. Approval of the proposed resolution, as amended, is a
policy matter for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
76
Date: 1/25/99
Sender. Mark Zufio
To: Saralyn Ang
cc: Steve Legnirto, Tony DeLuc
Priority: Normal
Subject: LiahtCourt Cafe
An ?_F? was conducted in September of 1996 for both a cafe on the
ground floor and a cafe on the main floor of City Hall. An acceptable
bid was chosen for the ground floor cafe (City Kail Cafe) in November
ct IPSE. Neither of the two bids submitted for the main floor Light
Court Cafe were acceptable to the selection committee. In late
November, McCalls approached the selection committee with an idea fo:
the Light Court Cafe. They submitted a written proposal with an
artist's rendition of the Light Court area with the cafe. The
selection committee accepted their proposal. Both cafes opened for
business on Jan. 5, 1999 and seem to be doing well so far.
It you have any other questions regarding this matter please contact
me at 554-9867.
Mark Zuffo
Real Estate Department
77
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 15 - File 99-0747
Department:
Item:
Description:
Administrative Services
Resolution authorizing the Director of Administrative
Services to enter into a Second Amendment to the
operating and licensing agreement with MVX
Communications (formerly Winston Taylor, Inc.) for the
operation of the San Francisco Affinity Phone Card
Program.
In May 1996, the Board of Supervisors, approved an
ordinance (File 186-96-3) which authorized a three-year
operating and licensing agreement with Winston Taylor,
Inc. (now MVX Communications) for the San Francisco
Affinity Phone Card Program. Subsequently, in April
1997, the Board of Supervisors, approved a resolution
(File 172-97-25) which authorized a First Amendment to
the operating and licensing agreement which reduced the
City's royalty percentage for phone card sales generated
by general retailers from 18.5% to 13.5%.
Under the San Francisco Affinity Phone Card Program,
prepaid phone cards with the seal and logo of the City and
County of San Francisco are sold by retailers and at
vending machines located at the Airport, City Hall, and in
other locations throughout the City in $5, $10, and $20
increments. Currently, there are 44 locations (vending
machines and retailers) where the phone card is sold.
Under the program, the City receives a percentage of
gross revenues realized by MVX Communications from
the sale of the phone cards according to a schedule of
rates ranging from 13.5% to 50.0% of revenue generated.
According to Ms. Kofo Domingo of the Administrative
Services Department, MVX Communications currently
remits revenues from the sale of such phone cards to the
City averaging $12,000 per month, or $144,000 annually.
The proposed resolution would authorize the Director of
Administrative Services to enter into a Second
Amendment to the operating and licensing agreement
with MVX Communications for the operation of the San
Francisco Affinity Phone Card Program. The Second
BOARD OF SUPERVISORS
BUDGET ANALYST
78
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Amendment contains the following three changes to the
current operating and licensing agreement:
1. Royalties for Recharge Revenue
Ms. Domingo advises that MYX Communications has
recently implemented a service where persons who
purchase a San Francisco Affinity Phone Card may add
additional minutes, or re-charge, their phone card by
calling a customer service number or signing up for an
automatic recharge plan. Under the current agreement,
the City receives 20 percent of Recharge Revenues
realized by MYX Communications. According to Ms.
Domingo, MYX Communications has requested that a
reduction in the City's royalties from Recharge Revenues
be made because MVX Communications currently offers
reduced recharge rates of approximately $0.09 cents per
minute for long distance calls within the United States
versus a rate of approximately $0.19 cents per minute for
such calls when the card is initially purchased from a
vending machine.
Under the proposed resolution, the City's royalty
percentage of Recharge Revenues would be reduced from
20 percent to 10-14 percent based on the following
schedule:
% of Gross Recharge Revenues and
range of dollar amounts to
be paid on a monthly basis
Monthly Gross by MYX Communications
Recharge Revenues to the Citv
$25,000 or under 14% ($0 - $3,500)
$25,001 - $50,000 13% ($3,250 - $6,500)
$50,001 - $75,000 12% ($6,000 - $9,000)
$75,001 - $100,000 11% ($8,250 - $11,000)
Over $100,000 10% ($10,000 or more)
Ms. Domingo reports that, to date, MYX Communications
has had only one customer utilize the Recharge Program
and therefore it is anticipated that the proposed reduction
to the royalties due to the City from the Recharge
Program will not result in a reduction in the monthly
revenues currently received by the City from sale of the
BOARD OF SUPERVISORS
BUDGET ANALYST
79
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
San Francisco Phone Cards (approximately $12,000 per
month).
2. Cooperative Marketing Fund
Ms. Domingo advises that there are no funding
requirements for marketing the San Francisco Affinity
Phone Card Program currently contained in the operating
and licensing agreement between the City and MVX
Communications. Under the proposed amendment, within
30 days of the approval of this resolution, MVX
Communications would contribute $5,000 to a
Cooperative Marketing Fund and thereafter on a monthly
basis contribute a percentage of gross revenues from the
San Francisco Affinity Phone Card into the Marketing
Fund based on the following schedule:
% of Gross Revenues and
range of dollar amounts to
be contributed on a monthly basis
by MVX Communications
Monthly Gross Revenues to Marketing Fund
$100,000 or under 2% ($0 - $2,000)
$100,001 - $125,000 3% ($3,000 - $3,750)
$125,001 - $150,000 4% ($5,000 - $6,000)
Over $150,000 5% ($7,500 or more)
Under the proposed resolution, the Marketing Fund
would be used solely to promote the San Francisco
Affinity Phone Card Program and would be jointly
administered by a Marketing Committee consisting of one
representative each from MVX Communications, the City,
and the San Francisco Convention and Visitors Bureau.
3. Contract Extensions
Under the original three-year agreement between the
City and with Winston Taylor, Inc. (now MVX
Communications), effective November 22, 1995 through
November 22, 1998, the City has the right to extend the
term for up to two additional two-year periods, for a total
of seven years.. Under the proposed Second Amendment,
the City would have the right to extend the term of the
BOARD OF SUPERVISORS
BUDGET ANALYST
80
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
operating and licensing agreement for up to six additional
one-year periods, for a total of nine years. Under the
proposed Second Amendment, the initial term of the first
extension of the contract would be retroactive from
November 22, 1998 to November 22, 1999. According to
Ms. Domingo, the Administrative Services Department is
requesting the change from two-year contract renewal
increments to one-year increments so that the
Department can re-evaluate the contract each year.
Comment:
Recommendation:
Ms. Domingo reports from the commencement of the San
Francisco Affinity Phone Card Program in November
1995 to April 1999, the City has received royalties
totaling $394,917. All of these revenues are credited to
the General Fund and are subject to appropriation
approval by the Board of Supervisors. In addition to the
funds of $394,917 remitted to the City's General Fund,
Ms. Domingo states that the Airport receives a portion
(approximately 10 percent) of all revenues from the sale of
the phone cards at the Airport.
Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
81
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 16 - File 99-1012
Department:
Item:
Description:
Mayor's Office of Public Finance
Motion awarding bonds and fixing definitive
interest rates for $20,000,000 General Obligation
Bonds (Affordable Housing), Series 1999A.
On April 26, 1999, the Board of Supervisors
approved a resolution authorizing and directing the
sale of $20,000,000 of General Obligation
Affordable Housing Bonds Series 1999A (File 98-
212). The proceeds from the sale of these bonds will
be used to finance the development of affordable
housing for low-income households and to provide
down payment assistance to low-income and
moderate-income first time homebuvers in the Citv.
Comment:
Recommendation:
Ms. Laura Opsahl of the Mayor's Office of Public
Finance advises that the bids for the proposed
bonds are scheduled to be opened at 8:00 am on
Wednesday, May 26, 1999, and that unless all bids
are rejected, the Finance and Labor Committee will
be asked to award the bonds to the bidder whose
bid represents the lowest true interest cost to the
City. Ms. Opsahl reports that the Mayor's Office of
Public Finance will submit an Amendment of the
Whole to the Finance and Labor Committee's
scheduled meeting at 10:00 am on Wednesday, May
26, 1999, which will list the winning bidder, the
other bidders, and the interest rate that each
bidder offered to the City.
Approve a motion which awards the subject bonds
to the low bidder, which represents the lowest true
interest cost to the City.
BOARD OF SUPERVISORS
BUDGET ANALYST
82
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Item 17 - File 99-0912
Department:
Item:
Amount:
Source of Funds:
Description:
Port
Request for release of $1,100,000 of reserved funds
for eartbquake-related capital improvements at
Pier 70.
$1,100,000
Port Operating Funds
On January 31, 1991, the Finance Committee of
the Board of Supervisors approved a supplemental
appropriation for $6,374,971 for repair of
earthquake-damaged facilities on Port property,
and placed $6,261,404 of these funds on reserve,
pending the selection of outside contractors and
submission of the contract cost details. Since that
time, the Finance Committee has approved releases
on those reserved funds of $3,283,055 for
earthquake work at Pier 45, the Ferry Building,
Ferry Plaza and Pier 27-29, such that there is a
current balance of $2,978,349 remaining on
reserve. The proposed request for release of
$1,100,000 of reserve funds would be used to cover
the costs of earthquake repairs on Pier 70, and
would result in a remaining reserved balance of
$1,878,349.
Pier 70, located at the foot of Potrero Hill, at 22 nd
and Illinois Streets, is the Port's only ship repair
yard and is currently leased to the San Francisco
Drydock company which operates the ship repair
yard. On February 4, 1999, the Port Commission
approved a lease amendment between the Port and
San Francisco Drydock to extend the terms of the
lease until December 16, 2002. In accordance with
Charter Section 9.118, this lease amendment was
not subject to the Board of Supervisors approval
because the lease amendment was for maritime
purposes. As part of this lease amendment, the
Port agreed to use the requested $1,100,000 of
reserved funds towards the costs of earthquake
repairs needed at Pier 70, subject to approval by
BOARD OF SUPERVISORS
BUDGET ANALYST
83
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
the Finance and Labor Committee. In addition,
under the lease amendment the Port agreed to
have such funds available for use by San Francisco
Drydock for these improvements by June 30, 1999.
Budget: Attachment 1, provided by the Port, identifies the
earthquake-related capital improvements proposed
for Pier 70, for a total cost of $1,210,000. This total
cost of earthquake-related renovations would be
paid for with the requested release of reserve funds
of $1,100,000 plus $110,000 of rent credits for San
Francisco Drydock (See Comment 5 for further
details).
As shown in Attachment 1, of the total $1,210,000,
the Port is proposing to expend $440,000 for
renovations to Building 104, which will be used for
administrative offices. The Port reports that
earthquake damage at Pier 70 necessitated the
closure of Building 111, the former administrative
office building, and has forced San Francisco
Drydock to inhabit temporary office trailers since
then. The balance of $770,000 ($1,210,000 total
cost less $440,000 for Building 104) would be used
for repairs to the bathroom, roof, pier, utilities aad
asphalting, grading and paving renovation projects
outlined on Attachment 1.
Comments: 1. In response to inquiries by the Budget Analyst's
Office regarding why the Port is only now
requesting to spend $1,100,000 in May of 1999
from funds previously reserved for earthquake
repairs in 1991, eight years ago, the Port provided
a memorandum contained in Attachment 2. As
discussed in Attachment 2. the Port is requesting
the release of the subject $1,100,000 of Port
Operating Funds because, in March of 1999, after
repeated claims and follow-up appeals, the Federal
Emergency Management Agency (FEMA) denied
the Port's last appeal for funding for the cost of
earthquake mitigation work related to Pier 70,
which would be renovated with the proposed funds.
2. Furthermore, Mr. Ben Kutnick of the Port
reports that in addition to the remaining
BOARD OF SUPERVISORS
BUDGET ANALYST
84
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
$1,878,349 on reserve, tbe Port has $563,181 of
previously appropriated but unexpended funds, for
a total remaining balance of $2,441,530 of Port
Operating Funds available for additional
earthquake-related repairs at the Port, after Pier
70. According to Mr. Kutnick, barring any
emergencies, the Port intends to retain this balance
until FEMA completes their final inspection and
audit, in case any of the previous Federal and State
expenditures are disallowed by FEMA and
therefore required to be paid from Port Operating
Funds. Mr. Kutnick reports that the Port will
submit a close-out request to FEMA in June of
1999 for the Ferry Building, which is the last
earthquake-related project.
3. Ms. Veronica Sanchez of the Port reports that, as
shown in Attachment 1, San Francisco Dry dock
employees will perform $563,750, or approximately
47 percent of the $1,210,000 proposed earthquake
repair work. Ms. Sanchez reports that the Port did
not competitively bid this contract, but rather
awarded the work to San Francisco Drydock on a
sole source basis. According to Ms. Sanchez, using
San Francisco Drydock employees for the work
provides better utilization of their metal trade
workers during slow ship repair periods. From the
Port's perspective, Ms. Sanchez notes that another
advantage of using San Francisco Drydock is that
the Port did not have to use Port resources to put
together the competitive bid documents and
oversee that process. Ms. Sanchez further notes
that awarding the contract to San Francisco
Drydock generates work for one of the Port's
tenants, which is ultimately good for the Port.
4. For the remainder of the work, Ms. Sanchez
reports that San Francisco Drydock will contract
with other subcontractors through a competitive
bid process. However such competitive bid process,
the same process the Port's shipyard uses for
Federal contracting, is not subject to the Port's
approval. Ms. Sanchez reports that these
subcontractors have not yet been selected.
However, according to Ms. Sanchez, San Francisco
BOARD OF SUPERVISORS
BUDGET ANALYST
85
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
Drydock has agreed to use good faith efforts to
designate 30 percent of such subcontracts for
minority and women-owned businesses. However
as noted, final subcontractor selection would not be
subject to Port approval.
5. Under the terms of the amended lease agreement
between the Port and San Francisco Drydock, the
rent payable to the Port is currently $66,667 per
month, or approximately $800,000 annually. In
accordance with the amended lease terms, the rent
is scheduled to increase in December of 1999 to
$75,000 per month ($900,000 annually) and again
in December of 2000 to $104,167 per month
($1,250,000 annually).
6. Given that the total capital improvement project
cost is $1,210,000, and the subject request is for
only $1,100,000, the Port has also agreed to provide
$110,000 of funds to San Francisco Drydock
through rent credits. Such rent credits would be
applied based on the invoices, receipts and
statements of accounting submitted by San
Francisco Drydock as the capital improvement
project work is completed, but the rent credits
cannot exceed one-half of the monthly rent due. As
a result, the actual rent to be received by the Port
from San Francisco Drydock for the first year
would be approximately $690,000 ($800,000 annual
rent less $110,000 rent credit).
Recommendation: Approval of the proposed release of $1,100,000 in
Port Operating Funds is a policy matter for the
Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
86
Memo to Finance and Labor Committee
May 26, 1999 Finance and Labor Committee Meeting
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Harvey M. Rose
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
BOARD OF SUPERVISORS
BUDGET ANALYST
Attachment 1
Earthquake Capital Improvements
Admin Building Renovations
Tot $ Est SFDWork Sub-Contract
$440,000 $220,000 $220,000
Admin and Production Relocation
Building 104 Focus
$440,000
Asphalting, Grading and Paving
$55,000
SO
$55,000
Area North of Bilding 36
Bathroom Repairs
$55,000
$165,000
$123,750
$41,250
Demo and Removal
Replacement
S50.000
S1 15.000
Repair 75' X 75" Sinking Pier Section
$275,000
$110,000
$165,000
Demo and Removal $65,000
Fabrication & Install of Bridge S210.000
Repair 75' X 75' Sinking Accessway (cable only) S55.000
$55,000
SO
Roofing Repairs
S110,000
$0
$110,000
Building #105
Building # 38
Building #109
Utilities Repair Under Piers
S37.000
S37.000
$36,000
$110,000
S55,000
$55,000
Sewage Systems $66,000
Fire Protection System ^ $44,000
Total of Earthquake Improvements $1,210,000
$563,750
$646,250
Note: The above information is based on best estimates. The values are estimates only and the final
dollar amounts may vary from the estimates.
MAY dYi 'yy 04:j4KTl HOKT OF SF EXECUTIVE
PORT OF SAN FRANCISCO
MEMORANDUM
May 20, 1999
P. 1/3
Attachment 2
Page 1 of 3
Ferry Building
San Francisco, CA 941 1 1
Telephone 415 774 04oo
Fsx 416 274 0528
www.Bfport.com
TO:
FROM:
SUBJECT:
Mr. Harvey Rose, Budget Analyst
Attn: Ms. Debra Newman
Cliff Jarrard
Chief Harbor Engineer
a
PIER 70 RELEASE OF RESERVE FUNDS
San Francisco Drydock Earthquake Repairs
1. REASONS FOR DELAYS IN REPAIRING BUILDING 111
Since 1989, the Port has diligently tried to get FEMA/OES to cover both the costs
of earthquake related seismic repairs and upgrading Building 111 according to local
building code standards. Several claims and appeals were filed with FEMA to
recover these costs. The reason for all denials is that FEMA does not recognize
the current SF Building seismic requirements that were not as clearly defined
in 1989.
Described below is a summary of the major events related to our efforts to secure
reimbursement from FEMA/OES
• FEMA/OES prepared repair estimate of repairing Building 111 shortly after the
earthquake. The Port hired a consultant - T.Y. Lin - to prepare our own repair
assessment and engineers estimate. Our estimate took into account the S.F.
Building Code requirements that the building be seismically upgraded to meet
the current code. FEMA/OES did not take this into account in their damage
repair assessment. Thus, our repair estimate was approximately $4 million
while FEMA/OES 's repair estimate was approximately $1 million. We asked
FEMA/DSR for $4 million, the amount of money necessary to bring the
building up to current code.
89
MAY 20 '99 04:34PM PORT OF SF EXECUTIVE P. 2/3
Attachment 2
Pa^e 2 of 3
Mr. Harvey Rose, Budget Analyst
Pier 70 Release of Reserve Funds
May 20, 1999
Page 2
• In late 1991, FEMA denied the Ports request for money to bring the building up
to the current building code. The Port appealed in early 1992. This appeal was
also denied.
• The Port filed a second appeal later in 1992. We were awaiting a response to
our appeal when we were advised by FEMA/OES to treat the project as a
hazard mitigation project. The Port modified the second appeal and applied for
hazard mitigation fund.
• In 1994, the Port received an additional $50,000 from FEMA/OES.
• In 1995, the Port requested for the additional $3,000,000 from FEMA/OES.
FEMA denied the request in early 1997. The Port filed an appeal to this denial
in mid - 1997
• In March 1999, FEMA denied that appeal.
2. OPPORTUNITY FOR RECOVERING FEMA FUNDS
FEMA/OES has offered $1.2 million dollars for repair and mitigation of Building
111 or another building that can be used for administrative offices. However, this
offer does not meet the total costs of repairing Building 111 up to local building
code standards and other work. The Port estimates that even with the FEMA/OES
reimbursement of $1.2 million, it would be $3 million short of the required
funding needed to make the building useable according to current code
At this time, the Port is unable to commit funds appropriated for earthquake
repairs towards Building 111 as we may have other earthquake repair and
mitigation residual costs relating to projects like the Ferry Building, Pier 45, the
Ferry Plaza and Piers 27/29.
Building 111 is in a historical district and it will take longer to secure permits for
repairing and upgrading the facility for administrative use. This time schedule
does not respond to the tenant's need to move out of the trailers it has been
occupying for the past ten years.
I//clin7pier70budgetanvs.doc
90
riHY d)a 'yy w-jarn wk\ t* bi- lxlcuiive . P. 3/3
Attachment 2
Page 3 of 3
Mr. Harvey Rose, Budget Analyst
Pier 70 Release of Reserve Funds
May 20, 1999
Page 3
The Port will accept FEMA's offer to pay for the $1 .2 million for Building 1 1 1 and
request an extension of time to use these funds for construction. FEMA is expected
to conclude its audits and inspections of all the earthquake projects of the Port after
June 1999. FEMA has not provided the Port with an exact time of when this process
will be concluded. When the audits are completed, the Port will be in a better
position to evaluate the availability of the remaining Port earthquake funds (as
appropriated in the March 1991 Supplemental).
At that time, the Port will have two options: 1) Undertake the seismic
improvements and other required upgrades to Building 111 with FEMA and Port
funds for office space for another tenant; 2) Invite private developers to bid on
design, construction and management of the building for an office use.
Until these issues are resolved, the repair of Building 104 as the Administrative
Offices for San Francisco Drydock is the most cost efficient means of meeting our
tenant's immediate needs to relocate out of the trailers.
Thank you for your consideration. If you have any further questions, please don't
hesitate to contact me at 274-0541.
cc; Peter Dailey
Alex Lee
Veronica Sanchez
Cliff Jarrard
I//clin7pier70budgetanvs.doc
91
City and County of San Francisco
Meeting Minutes
Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102-4689
Wednesday, June 02, 1999
10:00 AM
Special Meeting
City Hall, Room 263
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 10:10 a.m.
991053 [Budget Workshop-Various Departments]
Budget Workshop to review in depth the budgets for the Police Department and the Fire Department. (Clerk of
the Board)
3/8/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Matthew Hymel, Mayor's Budget Office: Chief of Police Department . Fred
Lau. Kim Burton, Mayor's Office of Criminal Justice: Chief of Fire Department, Robert Demmons ; Debra
Ward, Chief Financial Officer, Fire Department; Deputy Chief, of Fire Department, Patrick White; Jerry,
Local 790 Representative.
FILED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 11:57 a.m.
DOCUMENTS DEPT.
JUN 1 6 1999
SAN FRANCISCO
PUBLIC LIBRARY
City and County of San Francisco
Printed at 4:10 PM on 6/IV9
0.254
City and County of San Francisco
Meeting Minutes
Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102-1689
Thursday, June 03, 1999
10:00 AM
Special Meeting
City Hall, Room 263
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 10:13 a.m.
991 055 [Budget Workshop-Department of Public Health]
Budget Workshop to review in depth the budgets for the Department of Public Health.
3/10/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers. Supervisors Yee, Ammiano, Bierman; Dr. Mitchell Katz, Director,
Department of Public Health; Matthew 1 Hymel, Mayor's Budget Office; Bill Hirsh, Mental Health Association;
Jonathan Vernick, Baker Place; Stephen Vernon, Family Service Agency; Richard Heasley. San Francisco
Mental Health Contractors Association.
FILED.
Introduction of Guests
Supervisor Yee introduced Ying-Ke Liu, Counsellor of Taipei City Government, Republic of China (Sister City
to the City of San Francisco) and 37 high school students from Taipei City who sang a song and presented
gifts to the members of the Committee.
ADJOURNMENT
The meeting adjourned at 12:01 p.m.
DOCUMENTS DEPT.
JUN 1 5 1399
SAN FRANCISCO
PUBLIC LIBRARY
City and County of San Francisco
Printed at 4:2' PM on &1W
City and County of £an Francisco
Meeting Minutes
.Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102^689
Wednesday, June 09, 1999
10:00 AM
Regular Meeting
City Hall, Room 263
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 10:08 a.m.
REGULAR AGENDA
DOCUMENTS DEPT.
JUN 1 6 ISC9
SAN FRANCISCO
PUBLIC LIBRARY
990910 [Laguna Honda General Obligation Bond Debt]
Resolution determining and declaring that public interest and necessity demand the acquisition, construction
and/or reconstruction by the City and County of San Francisco of a health care and assisted living or other type
of continuing care facility or facilities to replace Laguna Honda Hospital, and that the estimated cost of
$299,000,000 for such municipal improvements is and will be too great to be paid out of the ordinary annual
income and revenue of the City and County and will require lease financing and/or the incurring of bonded
debt and/or other evidences of indebtedness by or for the City and County. (Department of Public Health)
5/5/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 6/9/1999.
6/2/99, SUBSTITUTED
6/2/99, ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Louise Renne. City Attorney: Dr. Mitchell
Katz, Director, Health Department; Lee Ann Monfredini, President Health Commission; Roma Guy, Vice
President, Health Commission; Tony Irons, City Architect; Monique Mover, Director Public Finance, Mayor's
Office; Supervisor Yee; Supervisor Ammiano; Ted Lakey; Deputy City Attorney; Joe Grubb, Executive
Director, Rent Board; Supervisor Bierman. In Support Susan Leal, Tax Collector/Treasurer; Veneracion
Zamora, Commission on Aging; Andy Sekara; Charles Levinson; Fred Hobson; Richard Ow; Kay Bromley;
Jean McClatchy; Sonny Quiniguini; Gill Thornally; Gabriel Medina, President, S.F. Young Democratic Club;
Ivana Kirola; Bill Price, Senior Action Network; M. Ward; Karen Licavoli, S.F. Tobacco Free Coalition;
Stella Ta, Chinese Progressive Association; Lori Lacewell, Columbia Park Boys and Girls Club; Katan.
Steven, Joseph, South of Market Council. Tobacco Free Project; Vivian (youth), CETA Program; Margaret
Tsai; Besty Cordoba; Lisa Manning; Adrianna Smith; James; David McGuire; Tamika Alford, Homeless
Prenatal Program; Gerald De Ryan; Chris Daley. Opposed: Lloyd Schloegel. Neither: Doug Comstock;
Father John Hermanez.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of Sam Francisco
Primed at 11:22 AM on 6/11/99
Finance and Labor Committee Meeting Minutes June 9, 1 999
990921 [Bond Special Election)
Ordinance calling and providing for a special election to be held in the City and County of San Francisco on
Tuesday, November 2, 1999, for the purpose of submitting to the voters a proposition to incur bonded debt
and/or other evidences of indebtedness and/or undertake lease financing by or for the City and County in the
principal amount of $299,000,000 for the acquisition, improvement, construction and/or reconstruction of a
health care, assisted living and/or other type of continuing care facility or facilities to replace Laguna Honda
Hospital; providing for the use of available tobacco settlement revenues and for the use of State and/or Federal
grants or funds received by the City and County that are required to fund such proposed project; finding that
the estimated cost of such proposed project is and will be too great to be paid out of the ordinary annual
income and revenue of the City and County and will require expenditures greater than the amount allowed
therefor by the annual tax levy; reciting the estimated cost of such proposed project; fixing the date of election
and the manner of holding such election and procedure for voting for or against the proposition; fixing the
annual rate of interest on such lease financing, bonded debt and/or other evidences of indebtedness; providing
for the levy and collection of taxes to pay both principal and interest of such bonded debt and/or other
evidences of indebtedness; prescribing notice to be given of such election; establishing the election precincts,
voting places and officers for the election; waiving the word limitation on ballot propositions imposed by San
Francisco Municipal Elections Code Section 510; and acknowledging receipt of findings by the City and
County Planning Department. (Department of Public Health)
(Substituted by the City Attorney 6/2/99 bearing new title; Fiscal impact; Companion measure to File 990910.)
5/5/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 6/9/1999.
6/2/99, SUBSTITUTED.
6/2/99, ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Louise
Renne, City Attorney; Dr. Mitchell Katz, Director, Health Department; Lee Ann Monfredini, President Health
Commission; Roma Guy, Vice President, Health Commission; Tony Irons, City Architect; Monique Mover,
Director Public Finance, Mayor's Office; Supervisor Yee; Supervisor Ammiano; Ted Lakey; Deputy City
Attorney; Joe Grubb, Executive Director, Rent Board; Supervisor Bierman. In Support: Susan Leal, Tax
Collector/Treasurer; Veneracion Zamora, Commission on Aging; Andy Sekara; Charles Levinson; Fred
Hobson; Richard Ow; Kay Bromley; Jean McClatchy; Sonny Quiniguini; Gill Thornally; Gabriel Medina,
President, S.F. Young Democratic Club; Ivana Kirola; Bill Price, Senior Action Network; M. Ward; Karen
Licavoli, S.F. Tobacco Free Coalition; Stella Ta, Chinese. Progressive Association; Lori Lacewell, Columbia
Park Boys and Girls Club; Katan, Steven, Joseph, South of Market Council, Tobacco Free Project; Vivian
(youth), CETA Program; Margaret Tsai; Besty Cordoba; Lisa Manning; Adrianna Smith; James; David
McGuire; Tamika Alford, Homeless Prenatal Program; Gerald De Ryan; Chris Daley. Opposed: Lloyd
Schloegel. Neither: Doug Comstock; Father John Hermanez. Amended on page 2, line 21 by deleting
"intends to" and inserting "will".
AMENDED.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991 1 1 1 [Tobacco Settlement Funds |
Supervisors Yee, Ammiano, Bierman
Resolution supporting funding for tobacco education, prevention and control services and urging that $ 1
million per year of tobacco settlement funds be dedicated to tobacco education, prevention and control efforts.
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Supervisor Bierman;
Supervisor Ammiano. Supervisor Bierman added as cosponsor.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco 2 Printed at 1 1:22 AM on 6/1 1/99
Finance and Labor Committee
Meeting Minutes
June 9, 1999
991087 [Interim Annual Appropriation Ordinance, Fiscal Year 1999-2000]
Mayor
Interim Annual Appropriation Ordinance appropriating all estimated receipts and all estimated expenditures
for the City and County of San Francisco for fiscal year ending June 30, 2000.
(Fiscal impact; Companion measure to File 991088.)
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Mathew Hymel, Mayor's
Office; Bill Lee, City Administrator; Harry Parker, Fine Arts Museum; Lawana Preston, Local 790;
Supervisor Ammiano; Supervisor Bierman. Recommended with Interim Budget Exceptions adopted as
outlined in the 6/4/99 Budget Analyst Report in file, however, the Committee approved the 9 5 positions for the
Fine Arts Museum for class 8226 Museum Guard.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991088 [Interim Annual Salary Ordinance, 1999-2000)
Mayor
Interim Annual Salary Ordinance enumerating positions in the annual budget and appropriation ordinance for
the fiscal year ending June 30, 2000.
(Fiscal impact; Companion measure to File 991087.)
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Mathew Hymel, Mayor's
Office; Bill Lee, City Administrator; Harry Parker, Fine Arts Museum; Lawana Preston, Local 790;
Supervisor Ammiano; Supervisor Bierman. Recommended with Interim Budget Exceptions adopted as
outlined in the 6/4/99 Budget Analyst Report in file, however, the Committee approved the 9.5 positions for the
Fine Arts Museum for class 8226 Museum Guard.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
990690 [City Hall License, Filming and Tour Fees]
Supervisors Kaufman, Ammiano
Ordinance amending Administrative Code by adding Section 4.1-2 to authorize the Department of
Administrative Services to charge fees for short term licenses, filming activities and tours in City Hall.
(Adds Section 4.1-2.)
4/12/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 5/12/1999.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Allison Krumhein, Supervisor Kaufman's Aide.
Steve Nelson, Director, Administrative Services; Supervisor Ammiano.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Printed at 11:22 AM on 6/1 1 /99
Finance and Labor Committee
Meeting Minutes
June 9, 1999
990916 (Employee Health Coverage)
Ordinance amending Administrative Code Section 16.157, approving Health Service System plans and rates of
contribution as adopted by the Health Service Board. (Department of Human Resources)
5/5/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
5/26/99, CONTINUED TO CALL OF THE CHAIR. Heard in Committee. Speakers: Supervisor Ammiano; Harvey Rose, Budget
Analyst; Ann Summercamp, Deputy Director, Health Service System; John Madden, Assistant Controller, Jean Frasier, Deputy City
Attorney; Supervisor Yee; Mathew Hymel, Mayor's Office, Bart Duncan, Deputy City Attorney Opposed: Leonard Lundgren,
President, Retired Teachers Association; Kay Walker, SEIU PAC; Lane De Lara, Ann Tobian, Nancy Gin, 2nd Vice President, CCSF
Retirees Association; Tony Sacco, Retired Firemen and Widows Association; Bernard Crotty; Leo Martinez, Board of Directors, Retired
Firemen and Widows Association, Robert Pardina, John LeHane, Police Association, Jean Thomas, Earl Gilman, Grady Shawn Allison;
Diane Hermann, Executive Board, Retired Employees. Neither: Gerald De Ryan, Labor Council, David Novogrodsky, Local 21
Heard in Committee. Speakers: Ed Harrington, Controller; Supervisor Yee; Ann Summercamp, Deputy
Director, Health Service System; Bart Duncan, Deputy City Attorney; Supervisor Ammiano. Opposed: Diane'
Hermann; Kay Walker; Bernard Crotty; Nancy Gin Neither: Gerald De Ryan; David Novogrodsky; Lawana
Preston, Local 790; David Glenen, nurse.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991054 [Budget Workshop-Municipal Railway)
Budget Workshop to review in depth the budget for the Municipal Railway. (Clerk of the Board)
3/9/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Michael Burns, General Manager, Municipal Railway; Supervisor Ammiano.
FILED by the following vote:
Ayes: 2 - Bierman, Ammiano
Absent: 1 - Yee
ADJOURNMENT
Meeting adjourned at 1:34 p.m
City and County of San Francisco
Printed at 11:2) Of on 6/11/99
V.S5t
f/ff
Public Library, Gov't Information Ctr.. 5 th Fir.
Attn: Susan Horn, Dept. 41
CITY AND COUNTY (iwftll$L)l) OF SAN FRANCISO^OCUMENTS DEPT.
JUN 8 1999
BOARD OF SUPERVISORS
* SAN FRANCISCO
BUDGET ANALYST PUBLIC LIBRARY
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
June 4, 1999
TO: ^Finance and Labor Committee
FROM: ..Budget Analyst
SUBJECT: fJune 9, 199j £Finance and Labor Committee Meeting
Items 1 and 2 - Files 99-0910 and 99-0921
Department: Department of Public Health (DPH)
Items: Item 1 - File 99-0910: Resolution determining and
declaring that the public interest and necessity demand
the acquisition, construction and/or reconstruction by
the City and County of San Francisco of a health care,
assisted living and/or other type of continuing care
facility or facilities to replace Laguna Honda Hospital
and that the estimated cost of $299,000,000 for such
municipal improvements is and will be too great to be
paid out of the ordinary annual income and revenue of
the City and County and will require lease financing
and/or the incurring of General Obligation and/or other
bonded debt and/or other evidences of indebtedness.
Item 2 - File 99-0921: Ordinance calling and providing
for a Special Election to be held in the City and County
of San Francisco on Tuesday, November 2, 1999 for the
purpose of submitting to the voters of the City and
County of San Francisco a proposition to incur General
Obligation bonded debt and/or other evidences of
indebtedness and/or undertake lease financing by or for
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
the City and County in the principal amount of
$299,000,000 for the acquisition, improvement,
construction and/or reconstruction of a health care,
assisted living and/or other type of continuing care
facility or facilities to replace Laguna Honda Hospital;
providing for the use of a portion of the Tobacco
Settlement Revenues and for the use of State and/or
Federal funds received by the City and County that are
required to fund such proposed project; finding that the
estimated cost of such proposed project is and will be too
great to be paid out of the ordinary annual income and
revenue of the City and County and will require
expenditures greater than the amount allowed by the
annual tax levy; reciting the estimated cost of such
proposed project; fixing the date of election and the
manner of holding such election and the procedure for
voting for or against the proposition; fixing the
maximum rate of interest on such lease financing,
bonded debt and/or other evidences of indebtedness;
providing for the levy and collection of taxes to pay both
principal and interest; establishing the election
precincts, voting places and officers for the election;
waiving the word limitation on ballot propositions
imposed by San Francisco Municipal Elections Code
Section 510; and acknowledging receipt of findings by
the City and County Planning Department.
Description: On April 20, 1999 a report prepared by the Laguna
Honda Replacement Planning Committee (LHRPC) was
presented to the Health Commission. The LHRPC is
comprised of 26 City officials and private citizens and
co-Chaired by the City Attorney and the Director of
Public Health. The City Attorney was appointed to lead
the planning effort for the Laguna Honda Replacement
Hospital by the Mayor. As Co-Chairs, the City Attorney
and the Director of Public Health selected members of
the LHRPC. The LHRPC has recommended a
demolition of the current Laguna Honda main hospital
wards and demolition of Clarendon Hall to provide a
facility that will accommodate a total of 1.200 beds and
the construction of a new 140-unit assisted living
facility (hereinafter called the "replacement project").
The LHRPC's report also recommends that Tobacco
Settlement proceeds due to the City, which the LHRPC
BOARD OF SUPERVISORS
BUDGET ANALYST
2
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
estimates will range from $313,400,000 to $442,100,000
over the next 25 years, be used as a source of funds to
partially offset the cost to property owners for
repayment of the General Obligation Bonds.
The proposed resolution (Item 1, File 99-0910) would
determine and declare that the public interest and
necessity demand the acquisition, construction and/or
reconstruction of a health care, assisted living and/or
other type of continuing care facility or facilities to
replace Laguna Honda Hospital and that the estimated
cost of $299,000,000 to partially fund such municipal
improvements is and will be too great to be paid out of
the ordinary annual income and revenue of the City and
County and will require lease financing and/or the
incurring of bonded debt and/or other evidences of
indebtedness.
The proposed ordinance (Item 2, File 99-0921) would
authorize submission of a Proposition to the electorate
for purposes of undertaking or incurring lease financing,
General Obligation bonded debt, and/or other evidence
of indebtedness in the amount of $299,000,000 and the
use of a portion of the Tobacco Settlement Revenues and
State and/or Federal funds to fund the Laguna Honda
Hospital Replacement Project.
Ms. Monique Moyer, Mayor's Director of Economic
Development and Public Finance, advises that the
estimated total project costs for the Laguna Honda
Hospital Replacement Project are $401,000,000.
According to Ms. Moyer, the anticipated sources of
funding for the total $401,000,000 project would be as
follows:
General Obligation Bond, lease financing,
or other types of indebtedness $299,000,000
Interest Earned on General Obligation Bonds,
lease financing, or other types of indebtedness 21,703,283
Tobacco Settlement Revenues
(including interest earnings) 80.296,717
$401,000,000
BOARD OF SUPERVISORS
BUDGET ANALYST
3
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Attachment I is a memo from Ms. Mover which provides
more detailed project and financing information for the
project.
Budget: A summary budget for the $401,000,000 total project
costs for the Laguna Honda Hospital Replacement
Project, provided by the LHRPC. is shown in
Attachment II.
Comments: 1. The City Charter provides for a legal debt limit of 3
percent of assessed real and personal property value.
The Mayor's Office of Public Finance has calculated the
City's Debt Limit Ratio as follows:
Total Debt Limit at 6/30/99 SI. 920.239,059
Outstanding General Obligation Bonds
at 6/30/99 894.105.000
Remaining General Obligation Capacity $1,026,134,059
If the subject bond issue of $299,000,000 proposed for
the November 1999 ballot were to be approved by the
voters, the remaining General Obligation bonding
capacity would be $727,134,059. However, the amount
of debt that could be issued in any given year is partly a
function of the level of payments on existing debt, which
fluctuates as older bond issues are retired and new
bonds are issued.
2. The proposed ordinance (Item 2. File 99-0921)
provides that the $299,000,000 in lease financing.
General Obligation bonded debt, and/or other evidences
of indebtedness used to finance the project shall bear
interest at a rate not to exceed 12 percent per annum.
According to Ms. Mover, assuming the debt is issued in
an interest environment which reflects norms for the
past ten years, the Laguna Honda Hospital debt would
bear a true interest cost of 6 percent. Upon issuance of
the entire $299,000,000. average annual debt service
would be approximately $26,476,300 and total debt
service would be $529,526,000 for the proposed 20-year
term.
3. The LHRPC estimates that Tobacco Settlement
revenues to be paid to the City will range from
$313,400,000 to $442,100,000 over the next 25 years.
According to the proposed ordinance (Item 2. File 99-
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
0921), such Tobacco Settlement proceeds would be used
as a source of funds to partially offset the cost to
property owners for repayment of General Obligation
Bonds used to finance the project, less $1,000,000 each
year which would be used to fund tobacco education,
prevention, and control purposes, subject to annual
appropriation approval by the Board of Supervisors.
As noted above, Ms. Moyer estimates that total debt
service for $299,000,000 in General Obligation Bonds
would be approximately $529,526,000 over 20 years and
that Tobacco Settlement proceeds would pay for
$214,715,000 or 40.5 percent of the total debt service.
4. According to Mr. John Madden of the Controller's
Office, if $299,000,000 in Laguna Honda General
Obligation Bonds were issued and no Tobacco
Settlement revenues were applied to offset the cost to
property owners, the Property Tax rate would increase
by approximately $.0412 per $100 of assessed value
beginning in FY 2000-01. At this rate, the owner of a
single family residence assessed at $400,000 would pa% r
$162.03 in additional annual Property Taxes over the
20-year term.
5. The LHRPC reports that in addition to the Tobacco
Settlement Revenues, State and Federal funding is
being sought by DPH to pay for a portion of the
replacement project costs. However, at this time DPH
cannot state definitively whether the City will or will
not receive additional funds from State and Federal
sources.
6. The Budget Analyst notes that the final calendar for
the June 9, 1999 meeting of the Finance and Labor
Committee states that authority to issue debt in the
amount of $437,045,000 would be requested from the
electorate instead of $299,000,000. This report is based
upon legislation which was substituted by DPH which
requests authority to issue debt in the amount of
$299,000,000.
Recommendation: Approval of the proposed resolution (File 99-0910) and
ordinance (File 99-0921) is a policy matter for the Board
of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
5
Office of the Mayor
san francisco
Attachment I
Pape I of 6
Willie Lewis Brown, jr.
May 28, 1999
TO: Monique De Jong
From: Monique Moyer
RE:
</$
Plan of Finance
Laguna Honda Hospital Replacement Project
Plan of Finance
As you know, the primary components of the Laguna Honda Hospital Replacement Project (the
"Project") are as follows:
temporary power plant;
1,200 bed skilled nursing facility including a center for adult-day health care, a senior
nutrition center, an employee child-care center, a swimming pool and a horticulture
unit;
demolition of Clarendon Hall and related site work;
improvements to the Administrative Wing of the existing hospital;
demolition of the remaining hospital wings and related site work;
construction of a surface parking lot; and
$15 million in "seed" money to construct approximately 140 assisted living units.
The Plan of Finance to construct the $401 million Project rehes on the issuance of S299 million
of general obligation bonds (and interest earnings thereon) and approximately $80 million of
tobacco settlement moneys to be applied on a "pay-as-you-go" basis. The proposed distribution
of GO bond and tobacco proceeds (exclusive of proceeds to pay financing costs) is summarized
in Attachment 1 hereto.
Pursuant to the Plan of Finance, all of the bonds are expected to be issued in the first year of the
Project in order to meet contract certification requirements in accordance with the City's Charter.
As such, the bond proceeds will be available to certify the contracts for (a) architectural and
engineering services for all elements of the Project, (b) construction management services for all
facets of the Project, (c) site preparation work for the skilled nursing facility including the base
structure; and (d) construction of a temporary power plant. As indicated in Attachment 1, the
bond proceeds (including interest earnings thereon) will fund approximately 95% of the costs to
complete components 1 and 2 listed above.
Assuming an interest rate of 6%, debt service will average approximately $26 million per year.
Column 2 ("Debt Service Due") of Attachment 2 hereto provides the preliminary' debt service
schedule for the GO bond issuance.
1 DR. CARLTON B. GOODLETT PLACE. ROOM 200 SAN FRANCISCO. CALIFORNIA 94102
(415) SS4.6141
RECYCLED PAPER
Attachment I
Page 2 of 6
Use of the Tobacco Settlement Moneys
In accordance with the 1998 Master Settlement Agreement ("Master Agreement") between
certain "settling states" and "participating manufacturers", the City will receive annual
distributions of tobacco settlement moneys in perpetuity. Pursuant to the Plan of Finance and the
proposed Ordinance, tobacco settlement moneys received by the City during the life of any bonds
will be used as follows:
(1) $1 million per year will be applied towards tobacco education, prevention and control
purposes;
(2) up to $100 million will be applied on a "pay-as-you-go" basis towards construction of
the Project; and
(3) all remaining tobacco settlement moneys will be applied against debt service on the
bonds.
The tobacco settlement requires participating tobacco manufacturers to pay a settlement fee on
each package of cigarettes sold in the United States. Therefore, payments from the tobacco
settlement rely on the amount of cigarettes sold domestically in each calendar year. Pursuant to
the Master Agreement, Price Waterhouse has been retained as the annual auditor and Citibank
has been retained as the escrow agent. The annual amount of settlement money owed from the
tobacco companies will be audited and billed in accordance with the agreement and such
payments will be made to Citibank by each April 15 th . The settlement money will then be
transferred to the State of California and distributed to the 58 counties and 4 cities which
participated in the lawsuit. Pursuant to a Memorandum of Understanding between the State and
the local jurisdictions, the amount that San Francisco will receive in part depends on our
population relative to that of the other 57 counties.
Based on actual cigarette sales at the time the Master Agreement was negotiated, San Francisco
is expected to receive approximately $585 million of tobacco settlement money over the next 25
years. The amount owed each year (while payable based on the actual amount of cigarettes sold)
is increased annually by a CPI adjustment of not less than 3% calculated on the amount of the
prior year payment. The amount payable to the settling states under the Master Agreement is
then reduced by any reduction in actual cigarette sales and any shortfall in collections. Payments
to San Francisco are subject to these same inflation, sales and monetary collection adjustments.
However, pursuant to the California Memorandum of Understanding, a further adjustment may
be made as a result of population shifts within the State of California. Thus, the City's share of
such money relies primarily on (a) the amount of cigarettes sold nationally each year, (b) the
absence of bankruptcy protection on the part of any participating manufacturer, and (c) San
Francisco's census.
Tobacco industry experts predict that cigarette sales in the U.S. will continue to decline. The
experts have created a rather complex formula as to the expected amount of decline in each of the
next 25 years which has been incorporated into the Plan of Finance. In the early years of the
settlement agreement, the tobacco experts anticipate that the reduction in tobacco sales will
outpace any growth in inflation. Over time, however, the experts anticipate that demand
Attachment I
Page 3 of 6
reductions will not exceed 3% per year and thus, any loss in sales revenue under the Master
Agreement will be offset by the minimum CPI adjustment of 3%. These calculations are
incorporated into the Plan of Finance as a means for assessing the City's receipt of tobacco
collections as demand declines. In order to assess the City's other risks (such as a bankruptcy
filing by one of the Big 4 manufacturers or a reduction in the City's census relative to the other
counties), the Plan of Finance assumes that an additional 25% of the tobacco revenues will be
lost and never received by the City. While 25% is a fairly sizable amount (and we believe, a very
conservative amount), credit analysts and investment bankers within the municipal bond industry
believe it would be imprudent at this time to assume that the City would receive in excess of 75%
of the anticipated collections. As the tobacco industry matures and payments under the Master
Agreement create an historical trend line, it is conceivable that municipal market analysts will
become comfortable in assuming that more of the money is actually received. Pursuant to the
proposed Ordinance, any increase in tobacco receipts would be required to be used to pay debt
service and offset any property' taxes related to such debt service.
The Master Agreement and the California Memorandum of Understanding are silent as to how
the participating entities should or can expend their share of the settlement The proposed
Ordinance will confirm the Board of Supervisors' and the Mayor's intent to apply the tobacco
receipts to rebuilding Laguna Honda Hospital. As part of the Ordinance, however, $1 million per
year of tobacco collections would be set aside for tobacco education, prevention and control
purposes commencing with the first year of collections.
In the first 5 years of the Plan of Finance, approximately $80 million in tobacco receipts are
anticipated to be collected (excluding the SI million per year educational set-aside) to fund
completion of the Project. Thereafter, in years 6 and 7, a portion of the tobacco collections not
used for tobacco education or Project completion will be available to offset debt service.
Following Project completion in year 7, all of the tobacco collections (with the exception of $1
million per year for education) will be used to offset debt service. The annual amount of tobacco
collections used to offset debt service is shown in Column 3 ("Use of Tobacco Receipts") of
Attachment 2. Once the debt is fully retired, the tobacco receipts (which continue in perpetuity)
would be available for any lawful purpose. Note that Column 3 only refers to tobacco receipts as
they are applied to offset debt service.
While the City expects to receive a significant amount of tobacco settlement money per year,
such money is not anticipated to be enough to completely offset the annual debt service on the
bonds. As such, a portion of the debt service will be required to be paid from property taxes.
The amount required in each year (assuming a 6% interest rate on the bonds) is shown in Column
4 ("Ad Valorem Taxes Needed") of Attachment 2.
Other Aspects of the Ordinance
The proposed ballot measure incorporates ways to reduce the amount of GO bonds issued if (a)
additional grants or funds are available or (b) tobacco-backed bonds can be issued. In the event
that the City is able to receive a grant specifically for the Project from the State or federal
governments, then the amount of GO bonds that could be issued would be reduced on a pro rata
basis. In other words, if the City received an upfront grant of S10 million, the amount of GO
Attachment I
Page 4 of 6
bonds would be reduced by SI million less any sunk costs to issue the remainder of the bonds.
If the City receives State or federal funds on a reimbursement basis (such as an annual Medicare
payment), such money would not reduce the amount of GO bonds issued but would be required
to offset debt service resulting in lower property tax assessments.
In addition, the proposed ballot measure would allow the City to use either lease revenue bonds
or a related debt instrument to leverage the tobacco settlement moneys in place of the GO bonds.
Tobacco settlement moneys have never been used to securitize municipal debt instruments.
Methods to leverage such moneys are in the developmental stages and will likely mature over
time. Voter approval of this measure would allow the City to substitute a tobacco-backed debt
instrument or lease revenue bonds in place of GO bonds in the event that such instruments
eventually become viable in the tax-exempt bond market
Finally, the proposed legislation would allow the City to issue the GO bonds in a short-term
interest rate mode (such as commercial paper) during construction in order to reduce debt service
in the early years. While such scenarios have been modeled, the Plan of Finance envisions the
issuance of fixed rate bonds. Before the City could issue GO bonds in a short-term mode, an
extensive analysis of short-term and long-term rates would need to be prepared. Since the debt is
not expected to be issued for quite some time, any analysis prepared today would not be very
reliable. However, I recommend that such analysis be prepared at the appropriate time and if
such analysis shows that long-term rates are expected to remain low during the construction
period, then the GO bonds should be issued in a short-term mode. If such analysis shows that
long-term rates are expected to rise significantly during construction, then the GO bonds should
be issued in a fixed-rate mode in order to lock in low rates. These are considerations that the
Board of Supervisors would approve by resolution prior to issuance of the bonds.
This is a rather complex Project and detailed Plan of Finance. In designing the Plan of Finance,
the Mayor's Office of Public Finance and the City Attorney's Office have relied heavily on the
pro bono services of Public Financial Management, Inc. (one of the highest ranked financial
advisory firms in the country), Kitahata & Associates (a locally-owned financial advisory firm),
Goldman Sachs & Co. (a Wall Street investment bank), The Law Offices of Pamela S. Jue, and
The Law Offices of Leslie M. Lava (both locally-owned counsel firms) and Brown & Wood, LLP
and Orrick Herrington & Sutcliffe, LLP (two nationally ranked bond counsel firms).
In reviewing the tobacco settlement moneys and related risks to its receipt, the Offices of the
Mayor and City Attorney have met extensively with Salomon Smith Barney, Morgan Stanley-
Dean Witter, Lehman Brothers and Goldman Sachs & Co. We believe the Plan of Finance takes
a conservative view of the anticipated tobacco collections and therefore is financially sound
based on all that we know today. I hope that you will concur with our assessment
If I can be of any assistance to you in your review, please do not hesitate to call me at 554-4862
or Sarah Hollenbeck at 554-6240 or Michelle Sexton at 554-4708. For more information
regarding the project itself, please contact Tangerine Brigham at DPH at 554-2631 or Tony Irons,
City Architect at 554-4555. Thank you.
Attachment I
Paee 5 of 6
Laguna Honda Hospital Replacement Project
Summary of Encumbrance of Project Contracts
Allocation of General Obligation Bond Proceeds & Tobacco Settlement Money
Project
Phase
Project
Encumbrance
Amount
GO Bond
and Interest
Earnings*
Tobacco &
Interest
Earnings
A/E Services
C/M Services
Temporary Power
Ongoing
subtotal:
subtotal
subtotal:
lab Admin Bldg.
ct parking
subtotal:
37,000,000
15,000,000
5.000.000
6.000.000
63,000,000
64,000,000
3000, OX
67,000,000
42,000.000
151,000,000
6.000.000
199,000,000
47,000,000
15.000.000
10.000.000
72.000.000
37 000.000
15.000,000
5,000,000
6.000.000
63.000.000
64,000.000
3,000.000
57.000,000
42,000.000
142,703,283
6.000.000
190.703.283
-
Site Work & Structure
Ongoing
-
Exterior, SNF
Interior, SNF
Ongoing
8.296,717
Demo Clarendon, Rer
Demo Wings; Constru
Assisted Living Match
Ongoing
8,296,717
47,000.000
15,000,000
10,000.000
72 000.000
Grand Total:
S 401.000,000
S 320.703,283
80.296,717
'Assumes $27 million in interest earnings from bond funds
10
Attachment I
Paee 6 of 6
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11
Attachment II
Page 1 of 2
LACUNA HONDA HOSPITAL REPLACEMENT BOND PROGRAM
PROPOSED BOND PROGRAM BUDGET
1 . CONSTRUCTION, PURCHASE & INSTALLATION
Includes construction contracts, demolition of existing structures,
hazardous materials abatement & removal, site-work, fixed
equipment, retrofits for temporary relocation, telecommunications
infrastructure, temporary utilities, contingencies for change orders.
Art Enrichment, escalation to the midpoint of construction.
S 309.259,000
CLIENT DEPARTMENT
Includes hospital staff, consultants, community outreach, and
operating expenses added to the normal day to day operations as a
result of this construction project & its associated relocations only.
(2 FTE @ S80/hr. avg. for 8 yrs. + 2% per/yr.)
PROJECT MANAGEMENT & CONTROL
Responsibilities include management of enure Bond Program, as well
as individual project scopes, budgets & schedules from start-up
through post-construction, monitoring of project funds, management
& procurement of design & construction contracts, processing and
payment of consulting & construction contracts per State and local
regulations, reporting Sc monitoring bond arbitrage and financing
costs, reporting to client department & others, bond sale requests and
appropriations, incorporation of HRC requirements (MBE'WBE
goals), scheduling & management of agency approvals, public
information publications, community outreach.
(5 FTE @ $80/hr. avg. for 8 yrs. + 2% per/yr.)
CITY ADMINISTRATIVE SERVICES
Includes project-specific administrative functions from City
Administrator, Purchaser, Controller. City Anorney, and Mayor's
Office of Financial Management, Real Estate Department.
City Administrator
Purchaser
Controller
Real Estate Department
Mayor's Office
($150,000 yr. For 8 yrs.)
REGULATORY AGENCY APPROVALS & FEES
Includes OSHPD & DBI building permit fees, demolition permits.
City Planning & Environmental Review fees, utility fees, such as
PG&E, Landmarks Board, Civic Design Review.
(3.4% of $309,259,000)
BASIC ARCHITECTURAL/ENGINEERING SERVICES
Includes basic A/E (schematic design, design development and
construction administration services) for each of the four distinct
construction projects, in the disciplines of architecture, structural,
mechanical, electrical engineering only.
(8% of $309,259,000)
3.088.000
7,721,000
1,200,000
10,515.000
24,740.000
12
Attachment II
Page 2 of 2
7. ADDITIONAL A/E SERVICES 12,370.000
Includes demolition specifications, environmental review, landscape
architecture, cost estimating, scheduling, post construction services,
quality assurance reviews, peer reviews, value engineering, interior
design, renderings, models, coordination of moves, medical
equipment consultants, operations planning, disabled access reviews,
signage, civil engineering, hazardous materials specifications,
equipment planning, telecom design, traffic engineering developing
architectural & engineering standards, printing & reproducibles.
(4% of $309,259,000)
8. CONSTRUCTION MONITORING 15,463,000
Includes construction management monitoring services, including
cost and schedule control, change orders, quality control, prevailing
wage monitoring, materials testing & inspection, hazardous materials
oversight.
(5% of $309259,000)
9. OWNER FURNISHED DATA 500,000
Existing construction & materials analyses supplied by the owner to
the design entities, including programming institutional Master Plan,
structural analysis, as builds, topographic surveys, pre-balance
reports, hazardous materials assessments & surveys.
(Lump Sum Estimate)
10. OTHER PROGRAM COSTS 1,718,000
Allowance for relocation for Admin. Building work and moving
patients to new facility.
($300 per patient & $20 SF Admin.)
11. ASSISTED LIVING 15,000,000
City match to develop assisted living units in Claredon Hall site.
(Lump Sum Cost)
TOTAL PROGRAM BUDGET 401 ,574,000 *
*Rounded to $401,000,000
13
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Item 3 - File 99-1111
Item:
Resolution supporting funding for tobacco education,
prevention, and control services and urging that
$1,000,000 per year of Tobacco Settlement funds be
dedicated to tobacco education, prevention and
control efforts.
Description:
As a result of lawsuits filed by the California
Attorney General, City and County of San Francisco,
and other California cities and counties, a settlement
agreement was reached in November 1998 between
the State Attorney General and the four major
tobacco manufacturers, including Philip Morris, Inc.
R.J. Reynolds Tobacco Company, Brown &
Williamson Tobacco Corporation and Lorillard
Tobacco Company which includes the payment of
approximately $25 bilhon to the State of California
over the next 25 years. In August of 1998, the
California Attorney General entered into a
Memorandum of Understanding (MOU) with the
applicable California cities and counties to distribute
one-half of any settlement from these lawsuits to
those California cities and counties. Under the MOU,
it is anticipated that the City and County of San
Francisco will receive between $313,400,000 to
$442,100,000 over 25 years, subject to certain
adjustments.
Approval of the proposed resolution would indicate
that the Board of Supervisors supports funding for
tobacco education, prevention and control services
and would urge that $1,000,000 per year of the
aforementioned Tobacco Settlement funds be
dedicated to such purposes.
Items 1 and 2 (Files 99-0910 and 99-0921) of this
report to the Finance and Labor Committee would
authorize submission of a Proposition to the
electorate for purposes of undertaking or incurring
lease financing, General Obligation bonded debt,
and/or other evidence of indebtedness and provide
that the Tobacco Settlement funds would be used to
pay a portion of the project and debt repayment costs
for the Laguna Honda Hospital Replacement Project.
BOARD OF SUPERVISORS
BUDGET ANALYST
14
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
As noted above, this subject resolution would support
the use of $1,000,000 annually from such Tobacco
Settlement proceeds for tobacco education,
prevention and control services as proposed in this
subject resolution.
Comment: The expenditure of the Tobacco Settlement proceeds
will be subject to annual appropriation approval by
the Board of Supervisors.
Recommendation: Approval of the proposed resolution is a policy matter
for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
15
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Items 4 and 5 - Files 99-1087 and 99-1088
1. The proposed legislation would approve the Interim Annual Appropriation
Ordinance (File 99-1087), the Interim Annual Salary Ordinance (File 99-1088).
2. The annual budget process for the City and County requires that the Board of
Supervisors approve an Interim Annual Appropriation Ordinance and an Interim
Annual Salary Ordinance for Fiscal Year 1999-2000 on or before June 30, 1999.
The purpose of these interim ordinances is to provide position and expenditure
authorization for the various departments of the City and County during the time
that the Finance and Labor Committee of the Board of Supervisors is reviewing the
Mayor's recommended budget for Fiscal Year 1999-2000. The budget is scheduled to
be adopted by the Board of Supervisors on July 19, 1999.
3. The Interim Annual Appropriation Ordinance and Interim Annual Salary
Ordinance are based on the Fiscal Year 1999-2000 proposed budget
recommendations of the Mayor. Hence, these ordinances include authorization and
funding for all programs and program revisions which are included in the Mayor's
proposed 1999-2000 budget. Each program and program revision will be reviewed
in detail during the budget hearings and sessions which have been scheduled by the
Finance and Labor Committee from June 15 through June 24, 1999.
4. As a general policy, in previous years, the Board of Supervisors has not
approved new positions and programs during the interim budget period without
detailed review. This general policy has been implemented by instructing the
Controller not to certify the availability of funds for new positions, new programs or
program expansions during the interim budget period between July 1 and July 31.
If an exception is approved by the Board of Supervisors, new positions can be filled
effective July 1. Otherwise, new positions will generally not be filled until August 1
at the earliest.
5. The Administrative Provisions of the Interim Annual Appropriation
Ordinance further state that no funds shall be allotted until August 1 for capital
improvements and equipment. However, leased equipment is not subject to this
provision. In certain cases, specific exceptions to these general policies have been
approved by the Board of Supervisors. Exceptions have been based on such factors
as new positions and programs that produce revenue or prevent major sendee
deficiencies which would result from dela\ f s in filling new positions or starting new
programs. Approval of some equipment purchases, for example, could result in cost
savings.
6. The Controller has prepared revisions to the Administrative Provisions of the
Interim Annual Appropriation Ordinance (AAO). These proposed revisions are
described below:
Board of Supervisors
Budget Analyst
16
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
• Section 7.2 - Previously, Section 7.2 defined equipment as items having a
value of over $1,000 and a useful life of three years or more. Such
equipment items must be detailed individually in the budget. The
proposed Administrative Provisions of the Interim AAO changes the
minimum equipment value from $1,000 to $5,000. The FY 1999-2000
Mayor's Recommended Budget reflects this proposed change in the
definition of equipment as items only with a value of $5,000 or more and a
useful life of three years or more is budgeted as equipment. All other
equipment type items, with a value less than $5,000 are not detailed and
are budgeted under materials and supplies. According to Mr. John
Madden, Chief Deputy Controller, the benefit of changing the definition of
the minimum equipment value for budgeting purposes is that technology
equipment, such as personal computers and related items, cannot be
easily specified months in advance, as required by the City's annual
budget process, due to rapid changes in specifications and prices for such
equipment. Also, personal computers and related items are now
considered routine and necessary office equipment for almost all
employees and are therefore more appropriately budgeted under materials
and supplies.
If the Board of Supervisors does not approve this proposed amendment to
the Administrative Provisions of the Interim AAO, according to Mr.
Madden, all items costing $1,000 or more, with a useful life of three years
or more, could not be procured from materials and supplies. Therefore,
according to Mr. Madden, the budget will then have to be amended, with
specific equipment with a value of between $1,000 and $4,999 submitted
to the Board of Supervisors for approval for each individual City
department.
• Section 9 Interdepartmental Services : two new paragraphs are added.
The first one allows the Controller to adjust the work order amounts paid
by individual City departments for the services of another department, as
long as the total funds provided to the performing department for such
work order services does not increase unless a supplemental appropriation
is approved. The second paragraph added to Section 9 allows the
Controller to review fees or charges authorized for the administration of
the Computer Store (a pre-approved fist of computer vendors for City
departments to select from, for the purchase of personal computers and
related items). Such fees or charges must be authorized by the Board of
Supervisor. According to Mr. Madden, legislation is now pending before
the Board of Supervisors to establish such fees or charges.
• Section 12.8 - Mayor's Reserves : This Administrative Provision was added
last year to permit the Mayor to create two General Fund Reserves, which
Board of Supervisors
Budget Analyst
17
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
could be released with the approval of the Mayor's Budget Office. The first
reserve was for one-time Capital Investments in the amount of
$21,484,400. This reserve represents capital improvement projects that
are budgeted in various General Fund and General Fund Supported
Departments. A second reserve established by the Mayor was for a one-
time Systems Investment reserve in the amount of $8,656,288. According
to Mr. Madden, this Administrative Provision was found to be
unnecessary and has therefore been deleted from the AAO.
7. The proposed Interim Annual Salary Ordinance (ASO) includes amended
Administrative Provisions which would alter the following Sections:
• Section 1.3 has been amended to remove references to the employment of
Legislative Analysts through consideration by the Clerk of the Board of
Supervisors based on recommendations of the Director of Human
Resources, the Controller and the Budget Analyst. According to Ms.
Andrea Gourdine, Director of Human Resources, this provision is no
longer applicable.
• Section 1.1B has been amended to enable the Director of Human
Resources to authorize exempt temporary appointments for Class 1229
Special Examiner. The Class 1229 Special Examiner is used for Police
Academy Instructors, many of whom are also employed as San Francisco
Police Officers. Such positions are now paid without receiving a temporary
appointment to Class 1229 and therefore receive, in effect, contract
payments instead of regular salary compensation through the Citj^'s
payroll system. This change is being made in order to comply with
Internal Revenue Service regulations.
• Section 1.3B of the Interim ASO also specifies meal prices for Sheriffs
Department employees working at San Francisco General Hospital's Jail
Medical Ward 7D. Presently, prices are $3.31 for breakfast, $4.53 for
lunch and $6.11 for dinner. The proposed amendment to the Interim ASO
would replace these prices with a fixed price of $5.09 for all meals.
8. In past years, the Mayor's recommended Interim Annual Appropriation
Ordinance and the Interim Annual Salary Ordinance have, in general, been
routinely approved by the Board of Supervisors, with the exception of new positions
and new programs, capital improvements and equipment, as noted above.
9. At the direction of the Finance and Labor Committee and the full Board of
Supervisors, the Budget Analyst has historically been instructed to analyze the
Mayor's recommended budget in detail and make recommendations for reducing the
Mayor's recommended budget only if such recommendations do not result in service
level reductions. Budget reductions recommended by the Budget Analyst and
Board of Supervisors
Budget Analyst
18
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
approved by the Board, have often been used by the Board of Supervisors as a
source of funds to: (a) restore items deleted in the Mayor's recommended budget; (b)
include new items in the budget based on the priorities of the Board of Supervisors;
and/or (c) increase the General Fund Reserve. In accordance with the Charter, the
reallocation of any savings realized from budget reductions made by the Board of
Supervisors can now be made by the Board of Supervisors without appropriation
approval by the Mayor, in accordance with the priorities of the Board of
Supervisors. Such amendments would be subject to Mayoral veto.
10. In accordance with the 1999-2000 Budget Calendar, the Interim Annual
Appropriation Ordinance and the Interim Annual Salary Ordinance are scheduled
to be passed on first reading at the June 14, 1999 meeting of the Board of
Supervisors. Final passage of these ordinances is scheduled for June 21, 1999.
11. The Budget Analyst has previously been advised by Mr. Burke Delventhal of
the City Attorney's Office that the Board of Supervisors is required to approve the
Mayor's recommended Interim Annual Appropriation Ordinance and Interim
Annual Salary Ordinance (and therefore the Interim Budget), subject to any
additional reductions which the Board may choose to make, by no later than June
30th of each year. Mr. Delventhal has further advised the Budget Analyst that if
these ordinances are not approved by the Board of Supervisors by June 30, the
Controller will no longer have authority to issue payroll warrants to City and
County employees or to issue other warrants to pay for any other City and County
services.
Mr. Harrington has previously advised the Budget Analyst that he concurs
with the opinion of Mr. Delventhal. The Controller would cease to issue any further
City and County warrants unless the Board of Supervisors approves an Interim
Annual Appropriation Ordinance and Interim Annual Salary Ordinance (the
Interim Budget) by June 30.
12. Various exceptions have been recommended by the Mayor to the Interim
Annual Appropriation Ordinance and the Interim Annual Salary Ordinance in
order to authorize a total of 60.4 new positions during the interim budget period
between July 1 and July 31, including a 0.9 FTE new position in the Department of
Administrative Services. 13 new positions for City Planning, 10 new positions for
the Department of Public Health, 16 new positions for the Department of
Telecommunications and Information Services, 5 new positions for the Emergency
Communications Department. 9.5 new positions for the Fine Arts Museum and 6
new positions for the Recreation and Park Department.
Board of Supervisors
Budget Analyst
19
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
The Mayor's recommended exceptions to the Interim AAO and Interim ASO
are discussed below, separately for each department.
Department of Administrative Services
Program
Administrative Services
Class Title
1372 Special Assistant XIII
1999-2000
No. Budget
Positions Amount
0.9
$69,900
Maximum
Annual
Salaries
$69,900
The Department requests one new position for hiring as of August 1, 1999 for the
2000 Census Project. We do not recommend approval of an exception to the Interim
Appropriation Ordinance, because the explanation for this new position includes
additional duties beyond the 2000 Census Project, and the proposed new position is
expected to become permanent, full time. The justification for this new position will
be analyzed as part of the overall budget review by the Budget Analyst's Office and
will be reported to the Finance Committee during the next two weeks.
City Planning
1999-2000
Maximum
No.
Budget
Annual
Program
Class
Title
Positions
Amount
Salaries
Current Planning (FDP)
1426
Senior Clerk Typist
1.0
$41,176
$41,815
Current Planning (FDP)
5277
Planner I
1.0
46,561
47,055
Current Planning (FDP)
5278
Planner II
3.0
169,774
171,583
Current Planning (FDP)
5291
Planner III
5.0
335,524
339,159
Current Planning (FDP)
5294
Planner rV
2.0
159,260
160,972
Current Planning (FDP)
5297
Planner V
L0
94.408
95,446
Totals
13.0
$ 846,703
$856,030
The Department of City Planning is requesting an Interim Salary Ordinance
exception of 13 positions for assignment to its Current Planning Program in order
to address a backlog of cases submitted to the Department for processing. The
Department's revenue for fee-related work in Current Planning is increasing by
$1,574,375, from the original budget of $4,940,779 in FY 1998-99 to $6,515,154 in
FY 1999-00, which is more than sufficient to cover the salary and related cost
increases.
The Budget Analyst recommends approval of the Interim Exception request for
these fee supported positions based on the increased planning permit processing
workload and proportionate revenue increase. Approval of this Interim Exception
request will permit the Department to begin recruitment and selection for these
board of supervisors
Budget Analyst
20
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
positions. However, the Budget Analyst does not believe it is realistic that the new
positions will be filled by July 1, 1999. Therefore, recommendations to adjust
funding for these new positions will be presented to the Finance and Labor
Committee over the next two weeks.
City Planning is also requesting two new, General Fund supported positions in the
FY 1999-2000 budget. The Budget Analyst is continuing to evaluate the request for
these two new positions and will report the results of our review to the Finance and
Labor Committee during the next two weeks.
Department of Public Health
Program
HPH-DPM
HPH-DPM
HPH-DMM
HPH-DMM
Class
2548
2830
2574
2930
Title
Occupational Therapist
Public Health Nurse
Clinical Psychologist
Mental Health Clinician
Totals
1999-2000
Maximum
No.
Budget
Annual
Positions
Amount
Salaries
4.0
S251.898
$271,328
4.0
287,680
288,410
1.0
"-239
72,993
10
62.392
63.063
10.0
$674,209
$695,794
The Department of Public Health requests an interim exception for 4.0 FTE new
Occupational Therapists and 4.0 new Public Health Nurse positions that would be
added to the Community Health, Maternal and Child Health Program to provide
services to children with handicaps or catastrophic medical conditions. This
program is funded by new State revenues funded through MediCal and a new
"Healthy Families Program". Additionally, the State has informed DPH that the
City's current Occupational Therapist staffing is deficient in relation to State
caseload standards.
A new 1.0 FTE Clinical Psychologist and 1.0 FTE Mental Health Clinician would be
added to the Mental Health Community Care program to provide mental health
services for children in foster care. The positions would be funded by Short Doyle
MediCal, Early Periodic Detection, Screening and Treatment Program (EPDST)
monies which do not require a County match. These positions were previously
funded by the State through contractual services in the Citys Department of
Human Services.
Approval of this Interim Exception request will permit the Department to begin
recruitment and selection for these positions. However, the Budget Analyst does not
believe it is realistic that the new positions will be filled by July 1, 1999. Therefore,
recommendations to adjust funding for these new positions will be presented to the
Finance and Labor Committee over the next two weeks.
Board of Supervisors
Budget Analyst
21
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Department of Telecommunications and Information Services (DTIS)
The Department reports that the City's new 911 System will be operational by
January 15, 2000 and the following 16 positions are essential to ensure successful
implementation of the System.
1999-2000 Maximum
No. Budget Annual
Program Class Title Positions Amount Salaries
Network Data, Radio & 1022
Phone
Network Data, Radio & 1023
Phone
Network Data, Radio & 1024
Phone
Subtotal
Administrator II
3
$ 140,325
$ 171,790
Administrator III
1
56,859
69,582
Administrator-Supervisor
I
61.177
74.854
5
$ 258,361
$316,226
The 5 positions shown above are needed to administer the 60 Local Area Networks
that have been installed at the Emergency Communications Department, and the
District Police Stations and Fire Stations. Staffing will be provided 24 hours per
day. The Budget Analyst recommends approval of these requested five exceptions.
1999-2000
Maximum
No.
Budget
Annual
Program
Class Title
Positions
Amount
Salaries
Network Data, Radio &
1042 Engineer-Journey
1
$ 68,086
$ 76,734
Phone
Network Data, Radio &
1043 Engineer-Senior
1
77,990
84,981
Phone
Network Data, Radio &.
1044 Engineer-Principal
_1
74.222
91.428
Phone
Subtotals
3
$ 220,298
$253,143
According to DTIS, these 3 positions are needed immediately to administer the
Wide Area Network that is being developed by a contractor. Staffing will be
provided 24 hours per day. The Budget Analyst recommends approval of these
requested three exceptions.
Program
Network Data, Radio &
Phone
Network Data, Radio &
Phone
Subtotal
Class
Title
("367 Radio Technician
"368 Senior Radio Technician
1999-2000 Maximum
No. Budget Annual
Positions Amount Salaries
5 $310,225 $379,755
1
71.838
87.930
$ 382,063 $ 467,685
Board of Supervisors
Budget Analyst
22
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
These 6 positions will be responsible for the City's 800 MHz Radio System and Wide
Area Network/Local Area Network infrastructure. Training of Radio Technicians
will be required prior to the January, 2000 date when the City's 800 MHz Radio
System becomes operational. The training on the radio system will take 6 months.
Staffing will be provided 24 hours per day. The Budget Analyst recommends
approval of these requested six exceptions.
Program
Management/ Admin.
Management/Admin.
Subtotals
Class Title
1204 Senior Personnel Clerk
1244 Senior Personnel Analyst
1999-2000
Maximum
No.
Budget
Annual
Positions
Amount
Salaries
1
$ 38,340
S 46,980
_1
55.760
68.225
2
S 94,100
S 115,205
The Department reports that they are having difficulty recruiting for all
Information Technology classes in DTIS because of the heavy competition with
private industry. Although not related to the 911 System these two positions are
requested to ensure successful hiring and training of the technical support staff.
Presently, the DTIS personnel function is staffed by one 1240 Department
Personnel Officer and one 1244 Senior Personnel Officer. DTIS now has total
staffing of 279 FTEs. The Budget Analyst recommends approval of these requested
two exceptions.
1999-2000 Maximum
No. Budget Annual
Positions Amount Salaries
DTIS Grand Total
16 $954,822
$1,152,259
As noted above, 14 of the DTIS requested 16 positions are needed for the City's 911
System which is anticipated to become operational on January 15, 2000.
Approval of this Interim Exception request will permit the Department to begin
recruitment and selection for these positions. However, the Budget Analyst does not
believe it is realistic that the new positions will be filled by July 1, 1999. Therefore,
recommendations to adjust funding for these new positions will be presented to the
Finance and Labor Committee over the next two weeks.
Board of Supervisors
Budget analyst
23
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Emergency Communications Department
1999-2000
Maximum
No.
Budget
Annual
Program
Class
Title
Positions
Amount
Salaries
ECD Administration
1222
Senior Payroll Clerk
1
$41,791
$51,156
ECD Administration
1241
Personnel Analyst
1
38,515
57,132
ECD Administration
1424
Clerk Typist
2
63,684
76,055
ECD Administration
1380
Special Assistant XXI
(informally designated
1
111.776
132.849
as ECD Director)
Totals
5
$ 255,766
$317,192
The Emergency Communications Department (ECD) will assume
management control over 151 Emergency Communications Dispatchers transferred
from the Police Department effective July 1, 1999. The Police Department has not
transferred additional administrative support positions however. We therefore
recommend interim exceptions for the necessary support positions including the
1222 Senior Payroll Clerk, the 1241 Personnel Analyst and the two 1424 Clerk
Typist positions for a total of four of the requested five positions. Overall, because of
the transfer of Dispatcher positions from the Police Department, ECD's total
number of FTEs in the FY 1999-2000 Mayor's Recommended Budget is 180.29, an
increase of 156.82 over the 23.47 FTEs in the original FY 1998-99 budget.
According to Mr. Ed Harrington, Controller, a Selection Committee for the ECD
Director position, made up of the Controller, the Chief of Police, the Fire Chief, the
DTIS Executive Director and the Emergency Communications Project Director is
currently reviewing resumes and will begin interviewing candidates for the ECD
Director during July, 1999. The actual date of hire for the new ECD Director is still
uncertain however.
Approval of this Interim Exception request will permit the Department to begin
recruitment and selection for these positions. However, the Budget Analyst does not
believe it is realistic that the new positions will be filled by July 1, 1999. Therefore,
recommendations to adjust funding for these 5 new positions will be presented to
the Finance and Labor Committee over the next two weeks.
Fine Arts Museum
Program
Mass
Title
Operation & Maintenance 8226 Museum Guard
of Museums
No.
Positions
9.5
1999-2000
Budget
Amount
$347,708
Maximum
Annual
Salaries
$404,159
Board of Supervisors
Budget Analyst
24
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
The Fine Arts Museum is requesting 9.5 new permanent positions to replace
temporary guards used for traveling exhibition galleries held at the de Young and
Legion of Honor Museums. Prior to January of 1999, the Fine Arts Museum used
contract guards, funded with private, off-budget funds, to staff the traveling
exhibition galleries. In January, 1999, the Department discontinued the use of
contract guards and hired 9.5 temporary Civil Service Museum Guards, whose
salaries were paid for with existing funds in the Museum's FY 1998-99 temporary
salaries budget. Since these guards work year-round on a full-time basis, the
Museum is now requesting that the existing 9.5 temporary Civil Service Museum
Guards be converted to permanent status, effective July 1, 1999. The Budget
Analyst is recommending against the 9.5 new permanent positions because the
transfer of these 9.5 positions, formerly funded privately by the Fine Arts Museum,
would now be financed from the City's General Fund, which is not justified. The
City currently contributes over $4.9 million from the General Fund and from the
Hotel Tax Fund to the Fine Arts Museum's FY 1998-99 budget. Therefore, General
Fund support for the Fine Arts Museum would increase by 18.4 percent to nearly
$5.8 million (excluding the cost of the proposed 9.5 new positions) based on the
Mayor's Recommended FY 1999-2000 budget.
Recreation and Park Department
1999-2000 Maximum
No. Budget Annual
Program Class Title Positions Amount Salaries
Golden Gate Park 9910 Public Service Trainee 6.00 $117,630 $117,630
The Recreation and Park Department (RPD) is requesting six new positions for its
Public Service Trainee Program, a return-to-work program which hires temporary
workers who are unemployed to perform park maintenance and clean-up activities
in Golden Gate Park for a four-month period. The Program is currently funded
through RPD's temporary salaries budget and consists of 12 temporary positions.
For FY 1999-00, RPD is seeking to convert the 12 existing temporary positions to
permanent status, plus add an additional six permanent positions. This request for
an Interim Budget exception is being made so that RPD can fill the six new
permanent positions on July 1, 1999, in time for the relatively busier summer
months. The Budget Analyst is recommending against approval of these six new
positions because the intent of the Public Service Trainee Program is to hire
workers on a temporary, four month basis, and therefore, the Public Service Trainee
Program should continue to be funded through temporary salaries.
Board of Supervisors
Budget Analyst
25
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Recommendations Pertaining to Requested Interim Budget Exceptions
1. As noted above, the Board of Supervisors has not approved new positions and
programs during the interim budget period without detailed review unless
exceptions are made. Based on the Departmental justifications described above, the
Budget Analyst is recommending approval of the following interim budget
exceptions as of July 1, 1999:
1999-2000
Maximum
No.
Budget
Annual
Department
Class
Title
Positions
Amount
Salaries
City Planning
1426
Senior Clerk Typist
1.0
541,176
$41,815
5277
Planner I
1.0
46,561
47,055
5278
Planner II
3.0
169,774
171,583
5291
Planner m
5.0
335,524
339,159
5294
Planner IV
2.0
159,260
160,972
5297
Planner V
L0
94.408
95.446
City Planning Total
13.0
S 846,703
$856,030
Department of Public
Health (DPH)
2548
Occupational Therapist
4.0
$251,898
$271,328
2830
Public Health Nurse
4.0
287,680
288,410
2574
Clinical Psychologist
1.0
72,239
72,993
2930
Mental Health Clinician
1.0
62.392
63.063
DPH Total
10.0
$674,209
$695,794
DTIS
1022
Administrator II
3
$ 140,325
$ 171,790
1023
Administrator HI
1
56.859
69,582
1024
Administrator-Supervisor
1
61,177
74,854
1042
Engineer-Journey
1
68,086
76,734
1043
Engineer-Senior
1
77,990
84,981
1044
Engineer-Principal
1
74,222
91,428
7367
Radio Technician
5
310,225
379,755
7368
Senior Radio Technician
1
71,838
87,930
1204
Senior Personnel Clerk
1
38,340
46.980
1244
Senior Personnel Analyst
1
55.760
68.225
DTIS Total
16
$954,822
$1,152,259
Emergency
Communications (ECD)
1222
Senior Payroll Clerk
1
$41,791
$51,156
1241
Personnel Analyst
1
38,515
57,132
1424
Clerk Typist
2
63,684
76.055
1380
Special Assistant XXI
(informally designated
I
111,776
132,849
as ECD Director)
ECD Totals
5
5 255.766
$317,192
Grand Total
44
$2,731,500
$3,292,603
Board of Supervisors
Budget Analyst
26
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Approval of these Interim Exception requests will permit the Department to begin
recruitment and selection for these positions. However, as previously noted, the
Budget Analyst does not believe it is realistic that the new positions will be filled by
July 1, 1999. Therefore, recommendations to adjust funding for these new positions
will be presented to the Finance and Labor Committee over the next two weeks.
The Budget Analyst is recommending that the following requested interim
exceptions be disapproved.
1999-2000
Maximum
No.
Budget
Annual
Department
Class
Title
Positions
Amount
Salaries
Administrative Services
1372
Special Assistant XIII
0.9
$ 69,900
$ 69,900
Fine Arts Museum
8226
Museum Guard
9.5
347,708
404,159
Recreation and Park
9910
Public Service Trainee
600
117.630
117.630
Department
Total
In summary of the total requested 60.4 new positions that are requested as
exceptions to the Interim Annual Appropriation Ordinance and Interim Annual
Salary Ordinance, the Budget Analyst recommends approval of 44 of the 60.4
positions and recommends disapproval of 16.4 of the 60.4 positions, for purposes of
filling such positions immediately as of July 1, 1999.
Overall Recommendation
Amend the proposed Interim Annual Appropriation Ordinance and the proposed
Interim Annual Salary Ordinance, in accordance with the Budget Analyst's
recommendations for the exceptions as noted above, and approve the legislation as
amended.
Board of Supervisors
Budget Analyst
27
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Item 6 - File 99-0690
Department:
Item:
Description:
Department of Administrative Services (DAS)
Ordinance amending Chapter 4, Part 1 of the San
Francisco Municipal Code (Administrative Code) by
adding Section 4.1-2 to authorize the Department
of Administrative Services to charge fees for short
term licenses for use of space at City Hall, filming
activities at City Hall, and tours of City Hall.
The proposed ordinance would amend the
Administrative Code to authorize the Department
of Administrative Services (DAS) to charge fees for
short term licenses for use of space at City Hall,
filming activities at City Hall, and tours 1 of City
Hah.
The Attachment to this report was provided by
DAS and lists the short term license fees before the
renovation of City Hall, at the re-opening of City
Hall and as proposed in the subject ordinance.
According to Ms. Kerry Painter of DAS, prior to the
renovation of City Hall, the Department of Public
Works (DPW) managed short-term licenses for use
of City Hall for events and filming activities. Ms.
Painter explains that DPW had only charged for
the labor costs associated with providing the space
and did not charge for the space, itself. Ms. Painter
reports and as indicated in the Attachment to this
report, fees charged before the renovation of City
Hall resulted in estimated annual revenues of
$221,400. Ms. Painter further reports and as also
indicated in the Attachment to this report, the
proposed fees are expected to generate $744,325
annually which is the same annual amount
estimated from the fee structure when City Hall
was re-opened. Ms. Painter explains that, although
the estimated annual revenues from short-term
licenses (a) at the re-opening of City Hall and (b)
per the proposed ordinance are anticipated to be
1 These tours would be arranged upon request and would be provided in addition to the tours
currently offered free to the public four times per weekday.
BOARD OF SUPERVISORS
BUDGET ANALYST
28
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Comments:
the same, the rates per type of use are calculated
differently and are based more directly on the
actual costs to DAS of providing the space per
event.
As noted in the Attachment, the fees range from a
low of $75 for tour groups of up to 30 people to a
high of $12,500 for short-term license for use of the
Rotunda with food service and optional use of the
Light Courts.
1. Ms. Painter explains that DAS has charged fees
since January of 1999 for use of the renovated City
Hall but that these fees were not previously
requested to be included in the Administrative
Code because DAS had not finalized the fee
structure until the preparation of the subject
ordinance. Ms. Painter further explains that DAS
prepared the subject ordinance and finalized the fee
structure after comparisons were made with other
governmental agencies and some events were
hosted at rented City Hall space.
2. Ms. Painter reports that all of the subject fee
revenues would be credited to the General Fund.
Recommendation:
Approval of the proposed ordinance is a policy
decision for the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
29
JUN-02-1999 l?:i£
CCSF fiDMIN. SERU1CES
415 554 6177 P. 02/02
Attachment
SHORT TERM LICENSE FEES TEvent Fees") Before Renovation At Bldg Opening Proposed # Events Total Revenue
5,400
12.500 12,500
12
5,400
9,375
9,375
11
103.125
5,400
10.000
10.000
8
80,000
5.400
7,500
7,500
6
45.000
4.000
4.000
16
54,000
3.000
3,000
11
33.000
2,000
2.000
14
28,000
540
Rotunda Rat Rate
With Food Served
May indiude Light Courts
25% 501 c3 Discount Rate
Rotunda Fiat Rate
Without Food Service
May Include Light Courts
25% 501 c3 Discount Rate
North or South Light Court Only Flat Rate
With food served and/or Satruday or
Sunday rental
25% 501 c3 Discount Rate
North or South Light Court Only Rat Rate
Without food served Monday
through Friday
Rotunsda Hourly Rate
8AM-4PM, Saturday & Sunday Only
North Light Court Hourly Rate
8AM - 4PM
South Light Court Hourly Rate
BAM-4PM, Saturday & Sunday Only
P&r Person Charge for Every Guest Over 100
(cahrge added to both hourly and flat rates)
Filming Activities
Tour Groups of up to 30 people
Tour Groups over 30 Pariticpants
TOTAL REVENUES
NOTES
No Light Court rates are included in the first column because the light courts were not available for event
when the building used to be occupied.
When the building was occupied prior to the renovation, there were typically 10 or fewer events per year.
1,000
500
500
1,000
500
500
48
54
Note: Rates are negotiated
150,000
48.000
32.000
75,600
10.000
75
86
75,600
125
744.325
TOTAL P. 02
30
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Item 7- File 99-0916
Note: This item was continued by the Finance Committee at its meeting of May
26, 1999.
1. The proposed ordinance would amend Section 16.157 of the
Administrative Code to approve the City's FY 1999-2000 Health Service System
plans and rates of contribution, as adopted by the Health Service Board, to be paid
by the members of the System. The members of the System are employees, retirees,
and surviving spouses of former employees and retirees of the City and County of
San Francisco, the San Francisco Unified School District, and the Community
College District.
Health Plans
2. The Board of Supervisors previously adopted a resolution (File 99-0606)
setting the City's contribution to the Health Service Fund for FY 1999-2000 at
$180.85 per month for each member. The City's contribution was established in
accordance with Charter Sections A8.423 and A8.428, which set the average
contribution rate based on a survey of the 10 most populous counties in California
(excluding San Francisco). The City's contribution of $180.85 per month ($2,170.20
annually) represents an increase of $6.09 per month, or approximately 3.5 percent,
from the FY 1998-99 rate of $174.76 per month ($2,097.12 annually).
3. Once the City's contribution is established, member contributions are
calculated by the Health Service System actuary, Rael and Letson, Consulting
Actuaries, in order to ensure that contributions from all sources will be adequate to
support anticipated claims for the upcoming fiscal year. The proposed ordinance
would establish member contribution rates for FY 1999-2000 in accordance with
Charter Sections A8.421 and A8.422. Charter Sections A8.421 and A8.422 require
approval by three-fourths of the members of the Board of Supervisors after the
Board has secured an actuarial report of the costs and effects of any proposed
change in the benefits of the Health Service System or rates of contribution.
Contribution rates vary according to: (1) whether or not a member is an active
employee, retired employee, or surviving spouse; (2) whether or not that individual
has Medicare coverage; and (3) which of the City's four health plans that individual
elects to join. The actuarial report and details of the member contribution rates are
contained in the file of the Clerk of the Board.
BOARD OF SUPERVISORS
BUDGET ANALYST
31
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
4. The following plans will be offered in FY 1999-2000:
• City Health Plan*
• Kaiser Foundation Health Plan
• Health Net
• PacifiCare
* Administered by the City's Health Service System.
5. According to Ms. Ann Sommercamp, Deputy Director of the Health Service
System, the total amount of employer and member contributions for the health
plans in FY 1999-2000 is estimated to be $192.6 million, which is approximately
11.7 percent ($20.2 million) more than the projected 1998-99 combined employer
and member contributions of $172.4 million. A summary of the estimated FY 1999-
2000 employer and employee contributions of $192.6 is as follows:
City and County Employer Contribution
- Active Employees
- Retired Employees and Surviving Spouses
School District/Community College District
Employer Contribution
- Active Employees
- Retired Employees and Surviving Spouses
Total Employer Contributions
Member Contributions
TOTAL CONTRIBUTIONS
Amount
(Millions)
$101.1
20.3
Percent
of Total
Contributions
52.5%
10.5%
24.0
12.5%
1.1
4.0%
$153.1
79.5%
39.5
20.5%
$192.6
100.0%
BOARD OF SUPERVISORS
BUDGET ANALYST
32
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
6. According to Ms. Sommercamp, of tbe total estimated employer
contributions of $153.1 million, approximately $109.0 million or 71 percent, would
be contributed from tbe City's General Fund. The remaining $44.1 million of
employer contributions would be paid from the City's Special Funds (e.g., Airport,
Port, Water Department and Hetch Hetchy) and from Unified School District and
Community College District revenue sources.
7. As shown in Table 1 below, the change in the monthly rates to be paid by
active City employees with no dependents (single employees) for FY 1999-2000
ranges from no change in the monthly rate to a 155 percent increase of $67.18 per
month ($806.16 annually), depending on the health plan selected (see Comment No.
9 for an explanation of this increase).
A comparison of the FY 1998-99 monthly rates for to be paid by active City
employees with the proposed FY 1999-2000 rates adopted by the Health Service
Board is as follows:
Table 1
Monthly Health Plan Rates to be Paid by Active City Employees
FY 1998-99 and FY 1999-2000
1998-99 1999-2000 Monthly Percentage
City Health Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
Kaiser Foundation Health Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
Health Net
Single Employee
Employee plus one dependent
Employee plus two dependents
PacifiCare
Single Employee
Employee plus one dependent
Employee plus two dependents
Monthly
Monthly
Increase/
Increase
Rates
Rates
(Decrease)
(Decrease)
$43.43
$110.61
$67.18
155%
238.12
317.75
79.63
33%
423.92
536.71
112.79
27%
2.00
4.00
2.00
100%
164.38
182.58
18.20
11%
299.16
330.81
31.65
11%
2.00
2.00
-0-
0%
165.72
170.36
4.64
3%
302.80
311.13
8.33
3%
2.00
2.00
-0-
0%
152.81
162.00
9.19
6%
279.18
295.15
15.97
6%
BOARD OF SUPERVISORS
BUDGET ANALYST
33
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
8. A comparison of the FY 1998-99 monthly rates to be paid by retired City
employees who are enrolled in the Health Service System with the proposed FY
1999-2000 rates adopted by the Health Service Board is as follows:
Table 2
Monthly Health Plan Rates to be Paid by Retired City Employees*
FY 1998-99 and FY 1999-2000
1998-99 1999-2000 Monthly Percentage
City Health Plan
Single Subscriber
Subscriber plus one dependent
(dependent not Medicare eligible)
Subscriber plus one dependent
(dependent is Medicare eligible)
Monthly
Rates
$0
194.69
157.92
Monthly
Rates
$65.11
272.25
228.69
Increase/ Increase
(Decrease) (Decrease)
$65.11
77.56
70.77
40%
45%
Kaiser Foundation Health Plan
Single Subscriber 0%
Subscriber plus one dependent 162.38 178.58 16.20 10%
(dependent not Medicare eligible)
Subscriber plus one dependent 28.31 13.62 (14.69) (52%)
(dependent is Medicare eligible)
Health Net
Single Subscriber 0%
Subscriber plus one dependent 166.07 168.36 2.29 1%
(dependent not Medicare eligible)
Subscriber plus one dependent 40.17 35.47 (4.70) (12%)
(dependent is Medicare eligible)
PacifiCare
Single Subscriber 0%
Subscriber plus one dependent 153.16 159.64 6.48 4%
(dependent not Medicare ebgible)
Subscriber plus one dependent 28.64 31.54 2.90 10%
(dependent is Medicare eligible)
* Rates listed are those paid by subscribers who are eligible for Medicare Parts A &. B. According to
the Health Services System, such subscribers and their dependents comprise over 90 percent of
retired enrollees in the System. For more detailed rate schedules, see the member contribution
rate schedules on file with the Clerk of the Board.
BOARD OF SUPERVISORS
BUDGET ANALYST
34
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
As shown in Table 2 above, the change in the monthly rates to be paid by
retired City employees with no dependents (single subscribers) for FY 1999-2000
depending on the health plan selected ranges from a 52 percent decrease of $14.69
per month ($176.28 annually) to an increase of $65.11 per month or $781.32
annually (in FY 1998-99 there was no charge to a retired single subscriber). See
Comment No. 9 for a further explanation of this increase.
9. Ms. Sommercamp advises that the reason contribution rates for City
employees and retirees under the City Health Plan are increasing is in large part
because in FY 1998-99 a portion of the costs of the City Health Plan were subsidized
by the Plan's Trust Fund and in FY 1999-2000 no such subsidy will be made. The
Plan's Trust Fund is made up of accumulated employer and employee contributions
to the City Health Plan and the interest earned on those monies. For FY 1998-99, it
was determined by the Health Service System that sufficient funds existed in the
Trust Fund to cover projected medical claims and subsidize member contributions,
however for FY 1999-2000 it has been determined that Trust Fund monies are not
sufficient to both cover projected medical claims and provide a subsidy. The Health
Services System reports that, as of June 30, 1997, the balance in the Trust Fund
was approximately $29.0 million compared to $12.5 million as of June 30, 1998.
According to the Health Services System, in FY 1998-99 employee
contributions to the City Health Plan were subsidized by the Trust Fund at an
average monthly rate of $42.66 per single active employee. As a result, such a
Trust Fund subsidy of active employee contributions in FY 1998-99 resulted in City
employer contributions for retirees in FY 1998-99 at a higher rate than in FY 1999-
2000, according to a formula set by the Charter, which therefore decreased the
retiree contribution. For example, in FY 1998-99, the majority of retirees received a
City employer contribution of $166.16 compared to $102.51 in FY 1999-2000. For a
more detailed explanation of the Trust Fund and why employee and retiree
contribution rates have increased, see Items 2 and 3, Files 99-0846 and 99-0468 of
this report to the Finance and Labor Committee.
10. A description of the changes to the City Health Plan health benefits in
FY 1999-2000 is provided in the Attachment, provided by the Health Services
System. According to the Health Services System, the major changes in the City
Health Plan benefits include an annual deductible for all members (employees and
retirees) who use a physician designated as a "preferred provider" of $250 for single
members (currently members who use a "preferred provider" pay no annual
deductible) and an annual prescription deductible for all members of $50 (currently
there is no deductible for prescriptions). The Health Services System reports that no
major benefit changes were made to the other three health plans offered by the City
in FY 1999-2000.
BOARD OF SUPERVISORS
BUDGET ANALYST
35
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Dental Plan Benefits
11. The Health Service Board has approved the continuance of Delta Dental
of California, the PMI DeltaCare Dental Plan and the Pacific Union Dental Plan.
According to Ms. Sommercamp, as of March 1, 1999, a total of 25,509 active and
retired employees were enrolled in the existing City-paid dental plans. Under the
dental plans, all premiums for active City employees are paid by the City (there is
no employee contribution). Retirees, and active Community College District and
SFUSD employees must pay their dental benefits in full according to a separate
schedule. Total premiums projected to be paid by retirees, and active City College
and SFUSD employees will total $2.1 million in FY 1999-2000, an increase of $0.3
million (16.7 percent) over projected premiums for FY 1998-99 of $1.8 million. As
shown in Table 3 below, total premiums (based on current membership) to be paid
by the City for its active employees will be an estimated $26.1 million for FY 1999-
2000, an increase of approximately $1.1 million (4.4 percent) over projected
premiums for FY 1998-99 of approximately $25.0 million. A summary' of these costs
is as follows:
Table 3
Projected Annual Dental Plan Premiums to be Paid by the City
for Active City Employees. FY 1998-99 and FY 1999-2000
Delta Dental of California
PMI DeltaCare Dental Plan
Pacific Union Dental Plan
Total
Projected
Projected
1998-99
1999-2000
Employee
Premiums*
Premiums**
Membership
(in millions)
(in millions)
23.183
$22.9
$23.7
1.584
1.5
1.6
742
0.6
0.8
25.509
$25.0
$26.1
Based on March 1, 1999 enrollments at existing monthly rates.
Based on March 1, 1999 enrollments at FY 1999-2000 rates.
BOARD OF SUPERVISORS
BUDGET ANALYST
36
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
12. A comparison of the FY 1998-99 and FY 1999-2000 monthly premium
rate schedules for employer contributions of the three dental plans is as follows:
Table 4
Monthly Dental Plan Rates to be Paid by the City for
Active City Employees, FY 1998-99 and 1999-2000
Delta Dental
Single Employee
Employee plus one dependent
Employee plus two dependents
PMI DeltaCare Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
Pacific Union Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
1998-99
Monthly
Rates
$46.68
79.36
121.37
22.17
36.58
54.09
18.55
29.15
46.11
1999-2000 Monthly Percentage
Monthly Increase/ Increase
Rates (Decrease) (Decrease)
$48.05
78.96
118.70
22.17
36.58
54.09
20.40
33.65
49.76
$1.37
(0.40)
(2.67)
-0-
-0-
-0-
1.85
4.50
3.65
3%
(1%)
(2%)
0%
0%
0%
10%
15%
8%
13. A choice of three dental plans that are fully paid for by retirees and
active employees who are ineligible for employer paid dental coverage will also
continue to be offered at no cost to the City. In both FY 1998-99 and FY 1999-2000,
the three dental plans have reduced benefits, such as a lower maximum annual
payment and no orthodontic benefits, in order to reduce the premium cost for plan
participants. Active employees who are not eligible for employer paid dental
coverage include Unified School District and the Community College District
employees.
A comparison of the monthly premium rates to be paid by retired City
employees and other employees who are ineligible for employer paid dental coverage
(i.e. active employees of the Unified School District and Community College
District) for the FY 1998-99 and FY 1999-2000 dental plans are shown in Table 5
below:
BOARD OF SUPERVISORS
BUDGET ANALYST
37
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Table 5
Dental Plan Monthly Premium Rates to be Paid by Retired City Employees
and Active Employees Who Are Ineligible for Employer Paid Coverage
FY 1998-99 and FY 1999-2000
Delta Dental
Single Employee
Employee plus one dependent
Employee plus two dependents
PMI Delta Care Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
Pacific Union Dental Plan
Single Employee
Employee plus one dependent
Employee plus two dependents
1998-99
Monthly
Rates
1999-2000
Monthly
Rates
Monthly
Increase/
(Decrease)
Percentage
Increase
(Decrease)
$30.38
60.47
85.08
$34.72
56.30
84.04
$4.34
(4.17)
(1.04)
14%
(7%)
(1%)
13.69
22.59
33.41
13.69
22.59
33.41
-0-
-0-
-0-
0%
0%
0%
10.86
19.35
27.56
13.14
21.69
32.07
2.28
2.34
4.51
21%
12%
16%
Comment
Many of the City's MOU's contain provisions whereby the City pays a portion
of the employee's cost for the health and dental plans. Such payments by the City
are not reflected in the data provided by the Health Sen-ice System shown in the
tables of this report. The majority of City workers are covered by MOU's which
provide that the full employee premium for single employees is paid by the City and
up to $225 of the employee premium for an employee with dependents is paid by the
City. For example, contrary to the data shown in Table 1, a single employee
enrolled under the City Health Plan paid nothing in FY 1998-1999 instead of the
rate of $43.43 per month and would again pay nothing under the proposed FY 1999-
2000 rates instead of the rate of $110.61 per month. An employee with one
dependent enrolled under the City Health Plan in FY 1998-99 paid $13.12 per
month instead of $233.12 and would pay $92.75 per month under the proposed FY
1999-200 rates instead of the rate of $317.75.
BOARD OF SUPERVISORS
BUDGET ANALYST
38
Memo to Finance and Labor Committee
June 9, 1999 Finance and Labor Committee Meeting
Recommendation
Since the Health Service System reports that the selection of the Health
Service System plans and determination of the rates of member contribution
for such plans have been conducted in accordance with the provisions of the
City Charter, approve the proposed ordinance.
Harvey M. Rose
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
BOARD OF SUPERVISORS
BUDGET ANALYST
39
ATTACHMENT
4/30/99
SECTION 3 CHANGES IN BENEFIT PLANS .
You should carefully review the following changes in Benefit Plans before making your Open Enrollment decisions.
(a) Changes To City Health Plan .
(1) Annual PPO Deductible . The Annual PPO Deductible is $250 for employee only, $500 for employee
+ 1 , and $750 for employee + 2 or more. It will be applied to all claims before payment. For
employee only, this means the member is responsible for the first $250 of medical charges. *
(2) Catastrophic Loss . The Health Plan will pay 100% of all PPO charges once the member (or family)
has incurred $25,000 of PPO expenses in any benefit year. This applies to the nine Bay Area PPO
counties only.*
(3) No Fixed Dollar Copays . The PPO will no longer have copays. Rather City Plan will pay 85% of
PPO and 50% of UCR charges for non-PPO contract rates once the annual deductible is satisfied.
This applies to all medical charges: Hospital, physician, lab. X-ray, MRJ, emergency room, etc.*
(4) Annual Non-PPO Deductible . The annual non-PPO deductible will be $500 for employee only,
$1,000 Jpr employee + 1, and $1,500 for employee + 2. If a member uses both PPO and non-PPO
providers, the member will need to satisfy the non-PPO deductible. The City Plan will then pay 50%
of UCR charges per member.'
(5) Members Outside PPO . For individuals who reside outside of the nine Bay Area PPO counties, City
Plan will continue to pay 80% of covered charges after the annual deductible of $250 for employee
only, $500 for employee + 1 , and $750 for employee + 2 or more is satisfied.
(6) Annual Prescription Deductible . An annual prescription deductible of $50 for employee only, $100
employee + 1, and $150 employee + 2 or more will be implemented. For employee only, this means
the member is responsible for the first $50.00 of prescription costs. Once this deductible is met, the
member is responsible for a $9 (generic) or $18 (brand) copayment for a 30-day supply for each
prescription.
*^r After the annual prescription deductible is met, the mail order drug benefit copayment b $18
(generic) and $36 (brand) for a 90-day supply. No controlled substances can be ordered via
mail order.
^r (7) Use of Brand Instead of Generic If von have a prescription for a brand name drug and there
is a generic equivalent available, the drug will be filled using the generic If the physician
and/or patient requests the brand name, the member is responsible for the difference between
the generic and brand name drug.
(8) Drug Utilization Review . A Drug Utilization Review (DUR) program will be instituted July 1, 1999
This program will determine appropriateness of prescribed medicine. This will prevent prescription
being filled when contra indicated conditions are noted. It will also monitor appropriate dosage.
(9) Acupuncture and Chiropractic . The acupuncture and chiropractic (PPO and non-PPO) payment is
50% of charges once the annual deductible has been satisfied. The annual limit on acupuncture and
chiropractic benefits is $1,000 per year for each benefit.
* The local network PPO consists of the nine (9) Bay Area counties: Alameda, Contra Costa, Marin, Napa, San
Francisco, San Mateo, Santa Clara, Solano and Sonoma. These rules apply to the nine Bay Area PPO counties only
40
Public Library,Gov't Info. Ctr., 5 th Fir.
Attn: Susan Horn
CITY AND COUNTY \&ZM&G&L OF SAN FRANCISCO
9*54
BOARD OF SUPERVISORS
l BUDGET ANALYST
or's . ■ 1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
=Y/flf-ao*> FAX (415) 252-0461
<fa
June 11, 1999
TO: /{ , Finance and Labor Committee DOCUMENTS DEPT.
FROM: x Budget Analyst JUN 1 6 1999
SUBJECT: Mayor's Recommended FY 1999-2000 Budget 3AN FRANCISCO
\ PUBLIC LIBRARY
The Budget Analyst has conducted a detailed review of the Mayor's
recommended FY 1999-2000 budget and has prepared reports and
recommendations to reduce the Mayor's recommended budget. Our reports (a)
describe the service impacts resulting from the Mayor's recommended budget when
services are affected (b) contain recommendations to reduce various budgeted items
and (c) contain recommendations to reserve various budgeted items only if
insufficient data has been submitted to support the budget requests. The
recommendations of the Budget Analyst to reduce the Mayor's budget, to be
considered by the Finance and Labor Committee over the next two weeks, would
not result in any existing service level reductions.
SUMMARY OF CHANGES IN EXPENDITURES AND POSITIONS
The Mayor's recommended FY 1999-2000 budget of $4,194,617,922 is
$312,749,314 or approximately 8.1 percent more than the FY 1998-99 budget of
$3,881,868,608 as finally approved in the FY 1998-99 Annual Appropriation
Ordinance.
The Mayor's recommended FY 1999-2000 total General Fund budget,
including General Fund Department expenditures and General Fund contributions
to General Fund Supported Departments, of $1,983,725,272 is $164,096,930 more
than the FY 1998-99 General Fund budget $1,819,628,342, an increase of 9.0
percent.
Memo to Finance and Labor Committee
June 11, 1999
The Mayor's recommended FY 1999-2000 budget includes 27,439 funded
positions or 1,454 more positions than the 25,985 funded positions shown in the
original FY 1998-99 budget approved by the Mayor and the Board of Supervisors.
The 27,439 positions in the Mayor's recommended FY 1999-2000 budget is 1,391
positions more than the 26,047 positions in the revised FY 1998-99 budget, after
adjusting for supplemental appropriations approved subsequent to the approval of
the FY 1998-99 budget.
A total of 725 or 49.9 percent of the 1,454 total new positions are funded from
General Fund and General Fund-Supported departments.
General Fund Expenditures and Reserves
The table below provides comparative data, for General Fund Expenditures,
Contributions to General Fund Supported Departments and Reserves, between the
original FY 1998-99 budget and the Mayor's Recommended 1999-2000 budget.
General Fund
Comparison of Expenditures and Other Uses
USES OF FUNDS
Regular Expenditures
Gross Expenditures
Less Interdepartmental
Recoveries
Net Regular Expenditures
Capital Improvement/
Facilities Maintenance
Contribution Transfers to
General Fund Supported
Departments *
Reserves
General Fund Reserve
Total Uses of Funds
Increase
Percent
(Decrease)
Increase
FY
FY
FY
from FY
(Decrease)
1998-99
1998-99
1999-2000
1998-99
from
Original
Revised
Proposed
Original
Original.
51.770.450,012
$1,812,446,805
$1,882,174,850
$111,724,838
6.3%
(159.171.118)
(179.556.899)
(176.514.135)
(17.343.017)
10.9%
$1,611,278,894
$1,632,889,906
$1,705,660,715
$94,381,821
5.9%
21,416,798
12.116,160
21,719,110
302,312
1.4%
126,675,063
143,598,500
192.126.026
65,450,963
51.7%
35,257,587
16.279,943
39.219.421
3.961.834
11.2%
25.000.000
20.508.675
$1,825,393,184
25.000.000
$1,983,725,272
.
.
$1,819,628,342
$164,096,930
9.0%
General Fund Contributions to General Fund Supported Departments shown herein
reflect corrections made by the Controller's Office to the Final 1998-99 Annual
Appropriation Ordinance and the Interim 1999-2000 Annual Appropriation Ordinance.
BOARD OF SUPERVISORS
BUDGET ANALYST
2
Memo to Finance and Labor Committee
June 11, 1999
As can be seen from the table above, total General Fund expenditures,
including Contribution Transfers to General Fund Supported Departments, has
increased by $164,096,930 or 9.0 percent. The largest percentage increase in
General Fund expenditures is for Contribution Transfers to General Fund
Supported Departments, which increased by $65,450,963 or 51.7 percent. Such
Contribution Transfers are to subsidize non-General Fund operations, primarily the
Public Transportation Commission (Muni), San Francisco General Hospital (SFGH)
and Laguna Honda Hospital (LHH). Overall, the Mayor's Recommended FY 1999-
2000 budget increases Contribution Transfers to Muni, SFGH and LHH by a total
of $65,608,438. Contributions to other non-General Fund operations have decreased
by $157,475, resulting in the net increase in Contribution Transfers to General
Fund Supported Departments of $65,450,963.
The Mayor's recommended FY 1999-2000 budget contains an undesignated
General Fund Reserve of $25,000,000, which is the same amount for the General
Fund Reserve as finally approved in the FY 1998-99 Annual Appropriation
Ordinance.
In addition, the City has an Emergency Reserve Fund balance of $4,198,046
carried forward from FY 1998-99 into FY 1999-2000.
Designated Reserves
In addition to the undesignated General Fund Reserve of $25,000,000, the
Mayor's Recommended FY 1999-2000 budget contains six designated General Fund
Reserves as follows:
100 Temporary Parking Control Officers (PCO) Traffic Program $ 500,000
On- City line Access 500,000
State Aid Payments 1,383.000
Litigation Reserve 9,000,000
Salary and Benefits 23,336,421
Year-End Closing Adjustments 4.500.000
Total Designated Reserves $39,219,421
The Litigation Reserve is established every year to set aside funds for
lawsuits and related expenses anticipated by the City Attorney for the 1999-2000
Fiscal Year. The Salary and Benefits Reserve is calculated by the Controller and
the Mayor's Office to provide funding for pending labor agreements that have not
yet been approved by the Board of Supervisors. The Year-End Closing Audit
Adjustments Reserve is established to provide funds for necessary expenditure
BOARD OF SUPERVISORS
BUDGET ANALYST
3
Memo to Finance and Labor Committee
June 11, 1999
adjustments that are required during the closeout of the 1998-99 Fiscal Year and
preparation of the Consolidated Annual Financial Report.
The remaining reserves shown in the table on the previous page will require
a supplemental appropriation, approved by both the Mayor and the Board of
Supervisors prior to release of such reserves. According to Mr. Matthew Hymel,
Mayor's Director of Finance, the Reserve in the amount of $500,000 for the 100
Temporary Parking Control Officers (PCOs) Traffic Program is recommended to set
aside funds for the hiring of additional Temporary PCOs in the Department of
Parking and Traffic (DPT) once the DPT has filled its permanent PCO staff
vacancies. According to Mr. Hymel, such Temporary PCOs are intended to improve
traffic and parking management and increase parking fine revenue.
The On- City line Access Reserve of $500,000 is for a potential project to
allow payment of City fines, fees and other items on-line. According to Mr. Hymel,
this project has not yet been fully developed, so this reserve has been set aside for
potential start-up costs.
The State Aid Payment Reserve of $1,383,000 has been recommended by the
Mayor to set aside funds for increased General Fund expenditures in the event that
the State approves a cost of living adjustment for Temporary Aid for Needy
Families (TANF) recipients. The amount of $1,383,000 is the anticipated General
Fund cost for such an adjustment, and for any additional costs resulting from a cost
of living increase for the City's County Adult Assistance Program (or CAAP.
formerly the General Assistance program) recipients which would be triggered by
the TANF benefit increase as required by the City ordinance that created the
County Adult Assistance Program.
Mayor's Reserves
The Mayor's Recommended Budget has also placed the following projects on
reserve, subject to release of funds by the Mayor, without approval by the Board of
Supervisors of a supplemental appropriation.
Millenium Event Safety $ 1.218,226
Year 2000 Project 2.250,000
Court Management System 1,790,463
Citywide Capital Projects 2.750.000 *
Total Mayor's Reserve $ 8,008.689
The 52,750,000 for Citywide Capital Projects is not designated in the Interim Annual
Appropriation Ordinance as a Mayor's reserve. However, Mr. Hymel informs the Budget Analyst
that the intended reserve will be shown in the Final Annual Appropriation Ordinance.
BOARD OF SUPERVISORS
BUDGET ANALYST
4
Memo to Finance and Labor Committee
June 11, 1999
According to Mr. Hymel, the Millenium Event Safety Reserve of $1,218,226 is
for Police and Sheriffs personnel costs and other related expenditures, in the event
that the Year 2000 New Year's Eve celebration warrants extraordinary-
expenditures for law enforcement services. The majority of the reserve is for Police
Overtime ($609,720 including fringe benefits) and Sheriffs Department overtime
salaries ($533,506). The reserve also includes $75,000 for potential non-salary costs.
The $2,250,000 Mayor's Reserve for the Year 2000 Project is for additional,
unforeseen expenses related to Y2K compliance. As previously reported to the
Finance and Labor Committee by the Budget Analyst, total appropriations between
Fiscal Year 1997-98 and Fiscal Year 1998-99 related to Y2K compliance have
amounted to $4,981,954. If the additional $2,250,000 for the Year 2000 Project
reserved in the Mayor's budget is expended, then total expenditures for Y2K will
amount to $7,231,954. In addition to the Mayor's Year 2000 Project reserve, the
Budget Analyst has identified $1,678,469 in Y2K related equipment replacement
for the Treasurer/Tax Collector ($1,361,789) and Department of Public Health
Medical Records Systems ($316,680) within the respective departmental budgets.
This proposed equipment replacement would further increase Y2K expenditures to
a total of $8,910,423.
The Court Management System Project Reserve of $1,790,000 has been
established by the Mayor pending the receipt of State funding for the Court
Management System Project and a specification of the purposes for which such
funds will be expended by the Trial Courts. The Court Management System is a
computer system shared by the City's criminal justice agencies to track individuals
from arrest to court disposition. This planned project would allow for conversion
from a mainframe computer to smaller computers and development of a more
current data base management system.
The $2,750,000 Mayor's Reserve for Citywide Capital Projects is to set aside
funds for unspecified capital needs that may arise during the 1999-00 Fiscal Year.
The Mayor's Reserves described above are budgeted in the General City
Responsibilities Department and the Department of Public Works (for the
$2,750,000 Citywide Capital Reserve). The Budget Analyst will recommend that all
four of the Mayor's Reserves also be reserved by the Finance and Labor Committee
in order for the Committee to review and consider the future expenditures from
such reserves. Our recommendation for such reserves will be included in the
General City Responsibilities budget and the Department of Public Works budget.
Mr. Hymel has indicated that he will request that the Finance and Labor
Committee only reserve $1,125,000 of the $2,250,000 Year 2000 Project Reserve to
BOARD OF SUPERVISORS
BUDGET ANALYST
5
Memo to Finance and Labor Committee
June 11, 1999
permit some flexibility in funding necessary Y2K compliance work during the first
few months of FY 1999-2000.
Controller's Reserves
The Controller has established total reserves for expenditures included in
departmental budgets in the amount of $163,096,817 for various expenditures as
described below:
Department
Department of Human
Services (DHS)
Business and
Economic
Development
Reason for Reserve
Pending receipt of
Federal Fundins
Southeastern
Environmental
Mitigation - Detailed
expenditure plan not yet
available.
Expenditure Reserved Amount
Non Persona] Services (SI 1.831,087);
Aid Assistance (S100.000); Non-
Custodial Parents Pilot Project
(51,069,682); California Welfare
Informanon Network (S6.442.003) S 1 9,442,772
Funding approved in FY 1998-99 State
Budget to: a I mitigate community issues
and avoid environmental impacts arising
from the sale of the Potrero Power Plant
($3,000,000); b) mfrastrucrure
improvements related to shut down of the
Hunters' Point Power Plant and or the 1 3,000,000
sale of the Potrero (SI 0.000.000)
Police *
Pending receipt of new
Federal Grant Funds for
the Community Oriented
Policing (COPs) in
School and the COPs
.Ahead programs which
would add a total of 86
new Police Officers in
FY 1999-2000.
Salaries (S3.799.627); Fringe Benefits
(S754.568).
Includes Federal Funds of S2. 633. 333
and a General Fund match of SI. 920.862.
4.554.195
Water Department
Pending sale of
commercial paper for
financing of capital
program
Total Controller's Reserves
Capital Improvement Projects (Water
Bond funded projects initially financed
through the sale of commercial paper).
126.099.850
S 163,096,817
The reserve for the Police Department has been restated to correct coding errors
in the Interim Annual Appropriation Ordinance.
BOARD OF SUPERVISORS
BUDGET ANALYST
6
Memo to Finance and Labor Committee
June 11, 1999
Since there is no detailed expenditure plan presently available for the
$13,000,000 reserve for the Southeastern Environmental Mitigation, the Budget
Analyst has recommended that these monies be reserved by the Finance and Labor
Committee in the Business and Economic Development Department.
Sources of Funds: Revenues and Contribution
Transfers
FY 1998-99 General Fund Year End Surplus
The March 3, 1999 Joint Report prepared by the Mayor's Director of Finance,
the Controller and the Budget Analyst projected a General Fund revenue surplus of
$1,500,000 for Fiscal Year 1999-2000. At that time, the Controller had estimated
that the FY 1998-99 General Fund year end surplus, which would be available as a
source of funds for the Fiscal Year 1999-2000 budget, would amount to $86,000,000.
Subsequently, on May 3, 1999, the Controller issued his Nine-Month Budget Status
report with an $100,900,000 estimate of the FY 1998-99 General Fund year end
surplus. The Mayor's Recommended 1999-2000 budget includes General Fund prior
year surplus funds in the amount of $102,900,000, $2,000,000 over the Controller's
May 3, 1999 estimate for the FY 1998-99 surplus, and an increase of $1,000,000
over the $101,900,000 FY 1997-98 estimated surplus which was used as a source of
funds for the original FY 1998-99 budget. According to Controller Ed Harrington,
the increase in the General Fund prior year surplus funds of $2,000,000 over the
Controller's May 3, 1999 estimate is the result of an increased allocation of State
Health Realignment funds for Fiscal Year 1998-99.
Regular Revenues
The Budget Analyst has reviewed the major budgeted General Fund
revenues in the Mayor's Recommended FY 1999-2000 budget and found that such
major revenues reflect the Controller's Nine-Month Budget Status report adjusted
for revenue growth rates that are consistent with the assumptions employed by the
March 3, 1999 Joint Report prepared by the Mayor's Director of Finance, the
Controller and the Budget Analyst. In summary, Property Taxes are budgeted to
increase by 5.6 percent over projected actual FY 1998-99 Property Tax revenue
(based on the actual growth in the property assessment roll); Business Taxes (the
Gross Receipts Tax, the Employers Payroll Tax and the Business License Tax) are
budgeted to increase 5.0% over projected actual FY 1998-99 revenue and Sales Tax
revenue is projected to increase by 3.0 percent over projected actual FY 1998-99
Sales Tax Revenue. Hotel Tax revenue is only projected to increase by 1.0 percent,
reflecting lower rates of growth in Hotel Taxes that has been experienced for FY
1998-99.
BOARD OF SUPERVISORS
BUDGET ANALYST
7
Memo to Finance and Labor Committee
June 11, 1999
The Budget Analyst notes that Real Property Transfer Tax Revenue is
budgeted at $42,000,000 for FY 1999-2000, the same amount budgeted for FY 1998-
99, despite the fact that actual revenues for"FY 1998-99 are now projected by the
Controller to reach $54,000,000. The budgeted amount of $42,000,000 reflects the
Joint Report's assumption that budget estimates for Real Property Transfer Tax
Revenue should be conservative, given its volatile nature and history of wide
fluctuations, which is dependent on large commercial and, to a lesser extent,
residential real estate sales.
Lastly, General Fund revenues include a one-time revenue of $5,500,000,
representing a portion of the Bank of America settlement obtained by the City
during the current 1998-99 Fiscal Year. The full amount of the settlement was
$7,500,000, however the Mayor's Recommended budget has included a lump sum
project appropriation of $2,000,000 in the FY 1999-2000 recommended budget of the
City Attorney. The Budget Analyst has recommended deletion of the $2,000,000
project appropriation in the City Attorney's budget.
Contribution Transfers to the General Fund from the Airport Annual Scn'ice Payment and
Hetch Hetchy Surplus Revenues
The General Fund receives an Annual Service Payment each year from the
San Francisco International Airport based on concession sales. In FY 1998-99, the
City repaid the remaining balance of the $25.0 million Airport advance to the
General Fund. This early full repayment reduced the FY 1998-99 Annual Service
Payment to the General Fund from the Airport to $10,953,550. However, with the
repayment of the Airport advance, the City's General Fund will now receive the full
amount of all future Airport Annual Service Payments to the General Fund.
Therefore, the March 3, 1999 Joint Report projected that the revenue transfer from
the San Francisco International Airport to the General Fund will increase by a full
$13.0 million, to a total of $24,000,000 in FY 1999-2000.
The March 3, 1999 Joint Report did not estimate any change to the General
Fund Contribution Transfer from Hetch Hetchy Surplus Revenues. The Hetch
Hetchy Contribution Transfer to the General Fund has decreased by $2,853,273
from the FY 1998-99 amount.
BOARD OF SUPERVISORS
BUDGET ANALYST
8
Memo to Finance and Labor Committee
June 11, 1999
The table below summarizes the Contribution Transfers to the General Fund.
FY 1999-200
FY 1998-99 Recommended Increase
Contribution Transfer Original Budget Budget (Decrease)
Airport Annual Service 5 10,953,550 $24,000,000 $13,046,450
Payment
Hetch Hetchy Surplus
Revenue Transfer 42.703.273 39.850.000 (2.853.273)
Totals $ 53,656,823 $ 63,850,000 $10,193,177
Changes to Department of telecommunications and
Information Services Charges for Services
The Department of Telecommunications and Information Services (DTIS)
budget is funded by a combination of charges to City Departments for DTIS services
(i.e., Work Order Recoveries) and General Fund support. During FY 1998-99, DTIS
conducted a rate study to review its charges and the method of distributing its
direct and overhead costs to City Departments. The rate study resulted in a
restructuring of DTIS Work Order Recover} 7 rates, increasing Work Order
Recoveries from most City Departments. In addition, the Mayor's Recommended
budget includes approximately $7.1 million in new DTIS charges for services
provided by DTIS in support of the new 911 Emergency Command Center. The
charges for DTIS services provided to the 911 Emergency Command Center are
divided between the Police Department, the Fire Department and the Emergency
Communications Department, and therefore represent a new General Fund cost.
According to an analysis provided by the Controller at the request of the
Budget Analyst, the restructuring of DTIS Work Order Recovery rates resulted in a
shift of approximately $2.6 million in baseline DTIS costs from General Fund and
General Fund Supported Departments to self-supporting departments such as the
Airport. However, the new DTIS charges for the 911 Emergency Command Center
of $7.1 million, which is a new General Fund cost, offsets the $2.6 million savings to
the General Fund from the rate restructuring.
The net impact on the General Fund is therefore an increased cost of $4.5
million annually (the $7.1 new General Fund cost for DTIS sendees for the new 911
Emergenc3 r Command Center less the $2.6 million General Fund cost reduction due
to the restructuring of DTIS Work Order Recovery rates).
BOARD OF SUPERVISORS
BUDGET ANALYST
9
Memo to Finance and Labor Committee
June 11, 1999
UNDERFUNDED ITEMS
In past Fiscal Years, the Budget Analyst has reported to the Board of
Supervisors that certain General Fund expenditures in the Mayor's recommended
budget have been significantly underbudgeted. Typically, such items include Police
Overtime and Workers Compensation. In FY 1998-99, the Police Department has
exceeded its overtime budget by an estimated $1,000,000 according to the
Controller's latest expenditure projections. This overexpenditure has been offset by
salary and fringe benefit savings. For the FY 1999-2000 budget, the Mayor has
recommended no increase m the General Fund Police Overtime budget of
$11,104,205. Based on current year spending therefore. Police Overtime may be
underbudgeted by $1,000,000. The actual amount of Police Overtime needed in
excess of the annual budget appropriation will depend largely on the level of special
event coverage required of the SFPD. According to Mr. Hymel, the Mayor's Office
believes that Police Overtime will be adequately funded at current levels based on
recent expenditure trends that show declining expenditures for Police Overtime.
The Controller's Nine-Month budget status report estimated a General Fund
deficit in Workers Compensation amounting to approximately $4,875,000. The
Budget Analyst has reviewed the Mayor's Recommended FY" 1999-2000 budget for
the adequacy of Workers Compensation budgeted expenditures. We have found that
the Mayor's Recommended budget has increased budgeted expenditures for Workers
Compensation in General Fund and General Fund supported departments to levels
that approximate current year spending levels. However, the Budget Analyst notes
that amounts for Workers Compensation expenditures in the Mayor's
Recommended Budget do not allow for growth in spending over the current 1998-99
Fiscal Year. The percentage increase between FY 1997-98 actual Workers
Compensation expenditures and the Controller's projected FY 1998-99 expenditures
is 14.5 percent.
According to Mr. Hymel, the Mayor has announced budgetary incentives for
controlling Workers Compensation costs. Departments who expend less than their
FY 1999-2000 budget for Workers Compensation will be allowed to "re-program"
such savings for other Departmental spending priorities. In addition, a the Mayor's
Workers Compensation Council (comprised of the Controller, the Director of Human
Resources, the General Manager of the Employees Retirement System and Mr.
Hymel) will be commissioning a study, using unspent prior year project funds, to
improve Workers Compensation claims management efficiency and develop
improved management information reports.
However, if FY 1999-2000 Workers Compensation expenditures increase by
14.5 percent, which is the percentage increase projected by the Controller to occur
BOARD OF SUPERVISORS
BUDGET ANALYST
10
Memo to Finance and Labor Committee
June 11, 1999
in FY 1998-99 over FY 1997-98, the Mayor's Recommended FY 1999-2000 budget
for Workers Compensation expenditures will be underfunded by approximately
$7,200,000.
Budget Analyst Recommendations
Over the next two weeks, the Budget Analyst will be presenting
recommendations to reduce expenditures in the Mayor's recommended FY 1999-
2000 budget without reducing services below current levels. For example, the
Budget Analyst has found that many City Departments are now requesting upward
substitutions of new positions for existing positions, resulting in increased salary
and fringe benefit costs. Based on the fact that such substitutions were made during
previous years without budgetary approval by the Board of Supervisors, the Budget
Analyst will recommend, where appropriate, increased attrition savings to enable
the Department to continue to maintain the existing filled positions, at the higher
salary and fringe benefit cost, but eliminate increased expenditures as a result of
such a substitution of positions.
Significant recommendations will be presented for the following City
Departmental budgets to be considered by the Finance and Labor Committee at its
meeting of June 15, 1999, with various other recommended reductions to be
reported subsequent to the issuance of this report:
Budget Analyst's Recommended
Department Expenditure Reductions
Administrative Services $ 1,136,332
City Attorney 3,044,212
City Planning 541,538
Trial Courts* 306,920
District Attorney 648,502
Sheriff 549,547
Police 2,873,634
Fire 2.922.850
Total $12,023,535
The budget of the Trial Courts is not subject to i eview by the Mayor. Only the
Board of Supervisors can reduce the budget of the Trial Courts.
BOARD OF SUPERVISORS
BUDGET ANALYST
11
Memo to Finance and Labor Committee
June 11, 1999
The recommendations of the Budget Analyst are subject to change over the
next two weeks based on new information provided by City Departments.
The results of the Budget Analyst's review are detailed in three separate
reports to the Finance and Labor Committee. Each report contains the
recommendations of the Budget Analyst, along with explanations supporting those
recommendations. These reports are as follows:
• General Administration and Finance and Public Protection (June 15,
1999, 1:00 p.m.)
• Culture and Recreation and Public Works, Transportation and Commerce
(June 16, 1999, 1:00 p.m.)
• Human Welfare, Community Health - Department of Public Health,
General City Responsibilities and Capital Projects (June 17, 1999, 1:00
p.m.)
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
BOARD OF SUPERVISORS
BUDGET ANALYST
12
City and County of San Francisco city Han
J J 1 Dr. Carlton B.
Meeting Minutes ooodiett piace
° -V San Francisco, CA
^Finance and Labor Committee 94102-1689
Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano
m>*\ «, 13 j 3.H Clerk: Mary Red
1
Tuesday, June 15, 1999 1:00 PM City Hall, Room 263
Departmental Budget Hearings
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 1 : 1 1 p.m.
DOCUMENTS DEPT.
JUL 7 1999
SAN FRANCISCO
PUBLIC LIBRARY
City and County of San Francisco
Printed at .1:14 P\i on 6/29/99
Finance and Labor Committee Meeting Minutes June 15, 1999
991065 (Budget, 1999-2000|
Hearing to consider 1999-2000 Budget.
General Administration and Finance
Administrative Services (ADM)
Convention Facilities Management (CFM)
Elections (REG)
Mayor (MYR)
Children, Youth & Families (CHI i
Business & Economic Development (IX'N)
Environment (ENV)
Board of Supervisors (BOS)
Ethics Commission (ETH)
City Attorney (CAT)
Treasurer/Tax Collector! I I X i
Controller (I <>\)
Assessor/Recorder ( ASR)
City Planning (CPC)
Board of Appeals (I' AB I
Rent Arbitration Board ( RMl
Civil Service Commission (CSC)
Human Resources (HRD)
Retirement System (RET)
Public Protection
Trial Courts (CRD
Juvenile Probation ( JUV)
Law Library (LLB)
County Agriculture Weights & Measures ( A( »W i
Coroner (CME)
Animal Care and Control (AM. i
Public Administrator Guardian (PAG)
District Attorney (DAT)
Public Defender (PDR)
Sheriff (SHF)
Adult Probation (ADP)
Fire Department (FIR)
Police (POL)
6/1/99, RECEIVED AND ASSIGNED lo Finance and Labor Commillcc
City and County of San Francisco 2 Printed at 3:14 PM on «:««»
Finance and Labor Committee Meeting Minutes June 15, 1999
Heard in Committee. Speakers: Supervisor Yee; Harvey Rose. Budget Analyst; Supervisor Ammiano; Mathew
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman. Department representatives: Steve
Nelson, Administrative Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities
Management; Naomi Nishioka, Acting Director, Elections; Deborah Alverez, Director, Department of
Children, Youth & Families; Monique Moyer, Mayor's Office. Ann Marie Conroy, Director. Treasure Island;
Francesca Vietor, Director, Department of Environment; Gloria Young, Clerk of the Board; Ginny Vida,
Director, Ethics Commission; Louise Renne, City Attorney; Susan Leal, Treasurer; Richard Sullivan, Tax
Collector; Tommie Whitlow, Assistant Assessor; Gerald Green, Director of Planning; Robert Feldman, Board
of Appeals; Joe Grubb, Executive Director, Rent Arbitration Board; Kate Favetti, Executive Officer, Civil
Service Commission; Andrea Gourdine, Director, Human Resources; Claire Murphy, General Manager,
Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer, Juvenile Probation;
Marsha Bell. Librarian, Law Library; David Frieders, Commissioner of Agriculture/Weights & Measures; Dr.
Boyd Stevens, Medical Examiner; Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez,
Public Administrator/Public Guardian; Terence Hallinan, District Attorney; Jeff Brown, Public Defender;
Michael Hennessey, Sheriff; Armando Cervantes. Chief Probation Officer, Adult Probation; Robert Demmons.
Chief, Fire Department; Ernie Prindel. Budget Analyst office; Ken Bruce, Budget Analyst office; Fred Lau,
Chief, Police Department. Public: Larry Latimore. POWER; Jake McCulder. Continued to June 16, 1999.
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 6:00 p.m.
City and County of San Francisco 3 Printed at 3:14 PM
City and County of San Francisco
Meeting Minutes
Finance and Labor Committee
Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
City Hall
1 Dr. Carlton B.
Goodlett Place
San Francisco, CA
94102^689
Wednesday, June 16, 1999
1:00 PM
Departmental Budget Hearings
City Hall, Room 263
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 1:09 p.m.
991154 [Bond Award, School and Zoo Facilities]
Mayor
Draft motion awarding bonds and fixing definitive interest rates for S20,395,0O0 General Obligation Bonds
(Educational Facilities Bonds, 1997 - Community College District), Series 1999A; $60,520,000 General
Obligation Bonds (Educational Facilities Bonds, 1997 - San Francisco Unified School District), Series 1999B;
$16,845,000 General Obligation Bonds (Zoo Facilities Bonds, 1997), Series 1999C.
6/7/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. Request it be considered at the June 16, 1999 meeting.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Laura Opsahl. Mayor's Office of Public
Finance: Supervisor Yee; Aaron Peskin. This motion does not have to go to the full Board.
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE.
Motion awarding bonds and fixing definitive interest rates for $20,395,000 General Obligation Bonds
(Educational Facilities Bonds, 1997 - Community College District), Series 1999A; $60,520,000 General
Obligation Bonds (Educational Facilities Bonds, 1997 - San Francisco Unified School District), Senes 1999B;
$16,845,000 General Obligation Bonds (Zoo Facilities Bonds, 1997), Series 1999C.
AWARDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Printed at 4:15 PM on 6S29M
Finance and Labor Committee Meeting Minutes June 16, 1999
Heard in Committee. Speakers: Har\'ey Rose, Budget Analyst; Robert Jenkins, Director. Steinhart Aquarium.
Academy of Sciences; Supervisor Yee; Ken Bruce, Budget Analyst 's office; Rich Newirth, Director. Art
Commission; Beth Murray, Managing Director, War Memorial; Steve Dykes, Director of Administrations,
Fine Arts Museum; Dede Wilsey; President Fine Arts Commission; Emily Sano, Director, Asian Art Museum;
Supervisor Bierman; Susan Hildreth. Deputy City Librarian, Public Library; Joel Robinson, Acting General
Manager, Recreation and Park; Mark Carlson. Deputy Director. Public Works; Frank Chiu. Director,
Department of Building Inspection; John Martin, Director, Airport; Doug Wong. Executive Director. Port;
Stuart Sunshine. Director, Parking and Traffic Department; Julia Dawson. Finance, DPT; Julia Friedlander.
Acting Director Telecommunications & Information Services; Mike Martin. Acting Director. Emergency
Communications Department; Andy Moran. General Manager, Public Utilities Commission; Michael Burns,
General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rudy Alverez, Finance
Director, Unified School District. Public: Janan New, Executive Director S.F. Apartment Association; Betsy
Thager; Carol Kocivar. PTA; Leah Shahum; Marvis Phillips; Brad; Matt Brown, St. Peters Housing; Jung
Kwok Ching; Mr. Guo, Chinese Progressive Association; Shuang Kuang; Jin Chi Zhso. Continued to June 1 7,
1999.
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991123 |PUC-Hetch Hetchy Fund Surplus]
Resolution concurring with the Public Utilities Commission's fact finding that a fund surplus (539,850,000)
exists in the utilities which can be transferred to the General Fund. (Controller)
6/2/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Supervisor Ammiano.
Opposed: Joan Girardot. Coalition for S.F. Neighborhoods; Mary McAfee; Rebecca SHverberg. In Support:
Marvis Phillips.
RECOMMENDED by the following vote:
Ayes: 3 - Ammiano, Yee, Bierman
991 148 [Redevelopment Interim Budget. Fiscal Year 1999-2000]
Supervisor Yee
Resolution approving an Interim Budget of the Redevelopment Agency of the City and County of San
Francisco for Fiscal Year 1999-2000.
(Fiscal impact.)
6/7/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Havey Rose. Budget Analyst.
RECOMMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 4:54 p.m.
City and County of San Francisco 3 Print '< i <" *« ™ <"> A - ■ »
Finance and Labor Committee Meeting Minutes June It,. 1999
991065 |Budget, 1999-2000|
Hearing to consider 1999-2000 Budget.
Culture and Recreation
County Education Office (USD)
Academy of Sciences (SCI)
Art Commission (ART)
War Memorial (WAR)
Fine Arts Museums (FAM)
Asian Art Museum (AAM)
Public Library (LIB)
Recreation and Park Commission (REC)
Public Works, Transportation and Commerce
Public Works (DPW)
Building Inspection (DBI)
Airport (AIR)
Port (PRT)
Parking and Traffic (PTC)
Telecommunications & Information Services (TIS)
Emergency Communications Department ( LCD)
Public Utilities Commission (PI
Light, Heat and Power (LHP)
Hetch Hetchy Project (HHP)
Water (WTR)
Clean Water (CWP)
Public Transportation - Municipal Railway (DPI i
San Francisco Redevelopment Agency
6/1/99, RECEIVED AND ASSIGNED lo Finance and Labor Committee
6/15/99, CONTINUED Heard in Committee Speakers Supervisor Vcc. Ilar\e> Rote, Budget Analyst; Supervisor Ammiano, Mathcw
Hymel, Mayor's Office; Ed Harrington. Controller; Supervisor Bicrman Department representatives Steve Nelson, Administrative
Services; Id I ee, Director, Purchasing; John Marks. Convention Facilities Management, Naomi Nishioka, Acting Director. Elections.
Deborah Alverez, Director, Department of Children, Youth & Families. Moniquc Mover. Mayor*! < ifficc. Ann Mane Conroy, Director,
Treasure Island. Franceses Victor. Director, Department of Environment. Gloria Young, Clerk of the Board. Ginnv Vida. Director,
Ethics Commission; Louise Renne. C'nv Attorney . Susan I eal, treasurer. Richard Sullivan. Tax Collector. Tommic Whitlow. Assistant
Assessor; Gerald Green, Director of Planning; Robert Feldman. Hoard of Appeals. Joe (iruhb. Executive Director. Rent Arbitration
Board; Kale Favetri, Executive Officer. Civ il Sen ice Commission; Andrea Gourdine, Director. Human Resources. Claire Murphv.
General Manager, Retirement System. Alan Carlson, Trial Courts. Jessie Williams. Chief Probation Officer. Juvenile Probation. Marsha
Bell, Librarian. Law Library; David Fneders. Commissioner of Agriculture Weights & Measures; Dr Boyd Stevens, Medical Examiner,
Carl Friedman, Director, Animal Care and Control. Ricardo Hernandez. Public Administrator Public Guardian. Terence Hallinan.
District Attorney; Jeff Brown, Public Defender. Michael Hennessey. Sheriff; Armando Cervantes. Chief Probation Officer, Adult
Probation; Robert Demmons, Chief. Fire Department. Ernie Pnndcl. Budget Analyst office. Ken Bruce. Budget Analyst office. Fred
Lau, Chief, Police Department Public: Larry Latimore, POWER. Jake McCulder Continued to June 16. 1999
City and County of San Francisco 2 Printed at 4:15 PM on 6/19/99
f
Public Library, Gov't Information Ctr.. 5 th Fir.
Attn: Susan Horn, Dept. 41
CITY AND COUNTY WtMj&S/LlS) OF SAN FRANCISCO
BOARD OF SUPERVISORS
BUDGET ANALYST
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
June 11, 199§0CUMENTS DEPT.
TO: t Finance and Labor Committee jim j a ««««
FROM: f Budget Analyst SAN FRANCISCO
SUBJECT: June 16, 1999 Finance and Labor Committee Meeting
Item 2 - File 99-1154
p UBLIC LIBRARY
Department:
Item:
Description:
Mayor's Office of Finance
Motion awarding bonds and fixing definitive
interest rate for $20,935,000 General Obligation
Bonds (Educational Facilities Bonds, 1997-
Community College District) Series 1999A;
$60,520,000 General Obligation Bonds
(Educational Facilities Bonds, 1997- San Francisco
Unified School District) Series 1999B, and
$16,845,000 General Obligation Bonds (Zoo
Facilities Bonds, 1997) Series 1999C.
On June 3, 1997, the San Francisco voters
approved the issuance of (1) $140 million of
General Obligation Bonds, including $50 million for
the Community College District and $90 million for
the San Francisco Unified School District and (2)
$48 million of General Obligation Bonds for the
San Francisco Zoo. On March 1, 1999 the Board of
Supervisors approved three resolutions authorizing
and directing the sale of (1) not to exceed $23
million of General Obligation Bonds for the
Community College District (Educational
Facilities Bonds, 1997, Series 1999A) (File 99-
Memo to Finance and Labor Committee
June 16, 1999 Finance and Labor Committee Meeting
0197); (2) not to exceed $64 million of General
Obligation Bonds for the San Francisco Unified
School District (Educational Facilities Bonds, 1997,
Series 1999B) (File 99-0200); and (3) not to exceed
$18 million of General Obligation Bonds for the
San Francisco Zoo ( Zoo Facilities Bonds, 1997,
Series 1999C).
Comments:
Ms. Laura Opsahl of the Mayor's Office of Public
Finance advises that the bids for the proposed
bonds are scheduled to be opened at 8:00 am on
Wednesday, June 16, 1999, and that unless all bids
are rejected, the Finance and Labor Committee will
be asked to award the bonds to the bidder whose
bid represents the lowest true interest cost to the
City. Ms. Opsahl reports that the Mayor's Office of
Public Finance will submit an Amendment of the
Whole to the Finance and Labor Committee's
scheduled meeting on Wednesday, June 16, 1999,
which will list the winning bidder, the other
bidders and the interest rate that each bidder
offered to the City.
Recommendation:
Approve a motion which awards the subject bonds
to the low bidder, which represents the lowest true
interest cost to the City.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance Committee
June 16, 1999 Finance Committee Meeting
Item 3 - File 99-1123
Departments:
Item:
Amount:
Description:
Public Utilities Commission (PUC)
Hetch Hetchy Water and Power (Hetch Hetchy)
Resolution concurring with the Public Utilities Commission's
finding that Hetch Hetchy has a surplus which can be
transferred to the City's General Fund.
$39,850,000
Requirements of Charter Section 16.103
Charter Section 16.103(b)3 provides that the Public Utilities
Commission, with the concurrence of two-thirds of the Board
of Supervisors, may authorize the transfer of any portion of
surplus funds to the General Fund upon making all of the
following findings of fact and judgment:
(A) That a surplus exists or is projected to exist after
meeting the requirements of this section;
(B) That there is no unfunded operating or capital
program that by its lack of funding could jeopardize
health, safety, water supply or power production;
(C) That there is no reasonably foreseeable operating
contingency that cannot be funded without General
Fund subsidy (meaning that the unappropriated
fund balance for the Hetch Hetchy operating fund
is sufficient to meet any "reasonably foreseeable
operating contingency"); and
(D) That such a transfer of funds in all other respects
reflects prudent utility practice.
Resolution Adopted by PUC
On June 8, 1999 the Public Utilities Commission adopted a
resolution authorizing a transfer to the City's General Fund
totaling $39,850,000 in FY 1999-2000 surplus Hetch Hetchy
funds, in accordance with the provisions of Charter Section
16.103.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance Committee
June 16, 1999 Finance Committee Meeting
Comment: The proposed FY 1999-2000 budget, as recommended by the
Mayor, is based on this proposed subject transfer of Hetch
Hetchy revenues to the General Fund in the amount of
$39,850,000, which is $2,853,273 less than the $42,703,273
transfer for FY 1998-99.
Recommendation: Approve the proposed resolution.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
June 16, 1999 Finance and Labor Committee Meeting
Item 4 -File 99-1148
1. Tbe proposed resolution would authorize an interim budget for the
Redevelopment Agency for Fiscal Year 1999-2000.
2. The proposed resolution approving an interim budget for the
Redevelopment Agency, provides authority for the Redevelopment Agency to
function under the State Community Redevelopment Law for the period from
July 1. 1999 until the Redevelopment Agency's budget for FY 1999-2000 is
finally approved by the Board of Supervisors, as required by Section 33606 of
the State Redevelopment law. Approval of the proposed resolution would not
constitute final approval of new positions, program expenditures, or Tax
Increment Bonds for FY 1999-2000 for the Redevelopment Agency.
3. As with the Interim Annual Appropriation Ordinance and Interim
Annual Salary Ordinance approved by the Finance and Labor Committee on
June 9, 1999 (Files 1087 and 1088) the interim budget for the Redevelopment
Agency is based on the Fiscal Year 1999-2000 proposed budget
recommendations of the Mayor. Hence, this resolution includes authorization
and funding for all programs and program revisions which are included in the
Mayor's proposed 1999-2000 budget. Each program and program revision
will be reviewed in detail during the budget hearings and sessions which
have been scheduled by the Finance and Labor Committee from June 15
through June 24, 1999.
4. As a general policy, in previous years, the Board of Supervisors has not
approved new positions and programs during the interim budget period
without detailed review. This general policy has been implemented by
instructing the Controller not to certify the availability of funds for new
positions, new programs or program expansions during the interim budget
period between July 1 and July 31. If an exception is approved by the Board
of Supervisors, new positions can be filled effective July 1. Otherwise, new-
positions will generally not be filled until August 1 at the earliest. The
Redevelopment Agency has not requested any exception to the interim
budget for Fiscal Year 1999-2000.
Recommendation
Approve the proposed resolution authorizing an interim budget for the
Redevelopment Agency for Fiscal Year 1999-2000.
Board of Supervisors
Budget Analyst
Memo to Finance and Labor Committee
June 16, 1999 Finance and Labor Committee Meeting
Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
Board of Supervisors
Budget Analyst
City and County- of San Francisco aty Haii
J 1 Dr. Carlton B.
Meeting Minutes coodiett piace
San Francisco, CA
Finance and Labor Committee 94102^689
Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano
Clerk: Mary Red
Thursday, June 17, 1999 1:00 PM City Hall, Room 263
Departmental Budget Hearings
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 1:04 p.m.
City and County of San Francisco I Printed at f:09 PM on A? 9 VV
Finance and Labor Committee Meeting Minuta June l~. I '999
991065 |Budgct, 1999-2000|
Hearing to consider 1999-2000 Budget.
Human Welfare
Commission on Aging (AGE)
Human Rights Commission (HRC)
Commission on the Status of Women ( WOM)
Human Services (DHS)
Community Health - Department of Public Health
Community Health Network (HCN)
Public Health (HPH)
General City Responsibilities (GEN)
Capital Projects (CAP)
6/1/99, RECEIVED AND ASSIGNED to Finance and I abor Committee
6/15/99, CONTINUED Heard in Committee Speakers Supervisor Yee; Harvey ROW, Budge! Analyst; Supervisor Ammiano. Mathcw
llymel. Mayor's Office; Id Harrington. Controller. Supervisor Hierrrun Department rcprescnui Min, Administrative
Services; Ed lee. Director. Purchasing, John Marks, Convention Facilities Management. Naomi Nishioka. Acting Director, I lections.
Deborah Alverez, Director, Department of Children, Youth & Families, Moniquc M I ifficc. Ann Mane Conroy, Director,
Treasure Island, Franccsca Vietor, Director, Department of Environment. Gloria Young, Clerk of the Hoard. tunny Vida, Director,
Ethics Commission; Louise Renne, City Attorney, Susan I eal. treasurer. Richard Sullivan, lav Collector; Tommic Whitlow, Assistant
Assessor, Gerald Green, Director of Planning. Robert Fcldman, Board of Appeals, Joe ( irubh. I vecutive Director. Rent Arbitration
Board, Kate Favetti, Executive Officer, Civil Service Commission. Andrea Gourdine, Director. Human Resources. Claire Murphy,
General Manager, Retirement System. Alan Carlson, I rial Courts. Jessie Williams. Chiel I er. Juvenile Probation, Marsha
Bell, Librarian, Law Library, David Friedcrs. Commissioner of Agriculture Weights & Measure^ lis, Medical I xamincr.
Carl Friedman, Director. Animal Care and Control; Ricardo Hernandez, Public Administrator Public Guardian, Terence Hallinan,
District Attorney, JefT Brown, Public Defender; Michael Hem \rmando Ccr% antes. Chief Probation Officer, Adult
Probation, Robert Demmons, Chief, Fire Department; Ernie Pnndel. Budget Analyst office; Ken Bruce. Budget Analyst olficc. Fred
Lau, Chief, Police Department Public: Larry Latimore, POWER; Jake McCulder Continued to June 16, 1999.
6/16/99, CONTINUED Heard in Committee Speakers llarvcv Rose. Budget Analyst; Robert Jenkins. Director, Stcinhart Aquanum.
Academy of Sciences, Supervisor Yee, Ken Bruce. Budget Analyst's office; Rich Ncwirth. Director, Art Commission. Beth Murray,
Managing Director, War Memorial. Steve Dykes, Director of Administrations, Fine Arts Museum, Dede Wilscy, President Fine Arts
Commission, Emily Sano, Director, Asian Art Museum. Supervisor Bierman. Susan Hildrcth. Deputy Cttv librarian. Public Library.
Joel Robinson, Acting General Manager, Recreation and Park, Mark Carlson. Deputy Director, Public Works. Frank Chiu, Director,
Department of Building Inspection, John Martin, Director, Airport, Doug Wong, Executive Director, Port. Stuart Sunshine, Director,
Parking and Traffic Department, Julia Dawson, Finance. DPT; Julia Fnedlander. Acting Director Telecommunications & Information
Services, Mike Martin, Acting Director, Emergency Communications Department. Andy Moran. General Manager, Public Utilities
Commission; Michael Bums. General Manager. Municipal Railway. Jim Morales, Director. Redevelopment Agencv, Rudy Alverez.
Finance Director, Unified School District Public Janan New. Executive Director S.F. Apartment Association. Betsy Thager. Carol
Kocivar., PTA; Leah Shahum, Mams Phillips. Brad; Matt Brown. St Peters Housing; Jung Kwok Ching. Mr Guo. Chinese Progressive
Association; Shuang Kuang; Jin Chi Zhso Continued to June 17, 1999
Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Dr Mitchell Katz, Director, Department of
Public Health: Supervisor Yee: Supervisor Ammiano: Ed Harrington, Controller: David Ishtda. Executive
Director, Commission on the Aging: Supervisor Bierman, Marivic Bamba. Executive Director. Human Rights
Commission: Sonia Melara, Executive Director. Commission on Status of Women, Ken Bruce. Budget
Analyst's Office: Will Lightbourne. Executive Director. Department of Human Services: Mathew Hymel.
Mayors Office. Public: Gilbert Crisswell. Continued to June 19. 1999.
CONTINUED.
ADJOURNMENT
The meeting adjourned at 2:29 p.m.
City and County of San Francisco 2 Printed at 5:09 PM on 6/29M
City and County of San Francisco aty Han
J J 1 Dr. Carlton B
Meeting Minutes Goodiett place
San Francisco, CA
Finance and Labor Committee 94102-4689
Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
Saturday, June 19, 1999 9:00 AM Legislative Chamber, Room 250
Budget Hearings, Public Testimony
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 9:16 a.m.
City and County of San Francisco I l'" n, ' J * "-" ' " "" 6/3a/ ^ 9
Finance and Labor Committee Meeting Minuta June I'). I')')')
991065 (Budget, 1999-2000|
Hearing to consider 1999-2000 Budget.
General Administration and Finance
Administrative Services (ADM I
Convention Facilities Management (11 Mi
Elections (REG)
Mayor (MYR)
Children, Youth & Families (CHI |
Business & Economic Development ( I < N)
Environment (ENV)
Board of Supervisors (BOS)
Ethics Commission (ETH)
City Attorney (CAT)
Treasurer/Tax Collector) 1 I \ )
Controller (CON)
Assessor/Recorder (ASR)
City Planning (CPC)
Board of Appeals (PAB)
Rent Arbitration Board (R\ I i
Civil Service Commission (CSC)
Human Resources (HRD)
Retirement System (RET)
Public Protection
Trial Courts (CRT)
Juvenile Probation (JUV)
Law Library (LLB)
County Agriculture Weights & Measures (AGW)
Coroner (CME)
Animal Care and Control ( ANi i
Public Administrator Guardian (PAG)
District Attorney (DAT)
Public Defender (PDR)
Sheriff (SHF)
Adult Probation (ADP)
Fire Department (FIR)
Police (POL)
Culture and Recreation
County Education Office (USD)
Academy of Sciences (SCI)
Art Commission (ART)
War Memorial (WAR)
Fine Arts Museums (FAM)
Asian Art Museum ( AAM)
Public Library (LIB)
Recreation and Park Commission (REC)
Public Works. Transportation and Commerce
Public Works (DPW)
Building Inspection (DBU
City and County of San Francisco 2 Printed at 9.-4S A\f on 6.3&V9
Finance and Labor Committee Meeting Minutes June 19, 1999
Airport (AIR)
Port (PRT)
Parking and Traffic (PTC)
Telecommunications & Information Services (TIS)
Emergency Communications Department (ECD)
Public Utilities Commission (PUC)
Light, Heat and Power (LHP)
Hetch Hetchy Project (HHP)
Water (WTR)
Clean Water (CWP)
Public Transportation - Municipal Railway (DPT)
San Francisco Redevelopment Agency
Human Welfare
Commission on Aging (AGE)
Human Rights Commission (HRC)
Commission on the Status of Women (WOM)
Human Services (DHS)
Community Health - Department of Public Health
Community Health Network (HCN)
Public Health (HPH)
General City Responsibilities (GEN)
Capital Projects (CAP)
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
6/15/99, CONTINUED Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano; Mathew
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman Department representatives: Steve Nelson, Administrative
Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities Management; Naomi Nishioka, Acting Director, Elections;
Deborah Alverez, Director, Department of Children, Youth & Families, Monique Moyer, Mayor's Office, Ann Marie Conroy, Director,
Treasure Island, Francesca Vietor, Director, Department of Environment, Gloria Young. Clerk of the Board; Ginny Vida. Director.
Ethics Commission; Louise Renne, City Attorney, Susan Leal, Treasurer; Richard Sullivan. Tax Collector, Tommie Whitlow, Assistant
Assessor; Gerald Green, Director of Planning; Robert Feldman, Board of Appeals; Joe Grubb, Executive Director, Rent Arbitration
Board; Kate Favetti, Executive Officer, Civil Service Commission; Andrea Gourdine, Director, Human Resources; Claire Murphy,
General Manager, Retirement System, Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer, Juvenile Probation, Marsha
Bell, Librarian, Law Library; David Fneders, Commissioner of Agriculture/Weights & Measures; Dr. Boyd Stevens, Medical Examiner.
Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez, Public Administrator/Public Guardian; Terence Hallinan,
District Attorney; Jeff Brown, Public Defender; Michael Hennessey, Sheriff; Armando Cervantes, Chief Probation Officer. Adult
Probation; Robert Demmons, Chief, Fire Department; Ernie Prindel, Budget Analyst office; Ken Bruce, Budget Analyst office; Fred
Lau, Chief, Police Department. Public: Larry Latimore, POWER; Jake McCulder. Continued to June 16. 1999.
6/16/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Robert Jenkins, Director, Steinhart Aquarium.
Academy of Sciences; Supervisor Yee; Ken Bruce, Budget Analyst's office, Rich Newirth, Director, Art Commission, Beth Murrav .
Managing Director, War Memorial, Steve Dykes, Director of Administrations, Fine Arts Museum, Dede Wilsey, President Fine Arts
Commission; Emily Sano, Director, Asian Art Museum; Supervisor Bierman; Susan Hildreth, Deputy City Librarian, Public Library.
Joel Robinson, Acting General Manager, Recreation and Park, Mark Carlson, Deputy Director, Public Works; Frank Chiu, Director.
Department of Building Inspection; John Martin, Director, Airport; Doug Wong, Executive Director, Port; Stuart Sunshine, Director.
Parking and Traffic Department; Julia Dawson, Finance, DPT, Julia Fnedlander. Acting Director Telecommunications & Information
Services; Mike Martin, Acting Director, Emergency Communications Department, Andy Moran, General Manager, Public Utilities
Commission; Michael Bums, General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rudy Alverez,
Finance Director, Unified School District Public: Janan New, Executive Director ST. Apartment Association; Betsy Thager, Carol
Kocivar , PTA; Leah Shahum, Mams Phillips, Brad. Matt Brown, St Peters Housing, Jung Kwok Ching, Mr Guo, Chinese Progressive
Association; Shuang Kuang, Jin Chi Zhso. Continued to June 17. 1999.
6/17/99, CONTINUED. Heard in Committee Speakers Harvey Rose, Budget Analyst; Dr Mitchell Kat/. Director. Department o(
Public Health; Supervisor Yee; Supervisor Ammiano; lid Harrington, Controller; David lshida. Executive Director, Commission on the
Aging, Supervisor Bierman, Manvic Bamba, Executive Director. Human Rights Commission. Soma Melara. Executive Director.
Commission on Status of Women. Ken Bruce. Budget Analyst's Office. Will Lightboumc. Executive Director, Department of Human
Services, Mathew Hymel, Mayors Office Public Gilbert Crisswell Continued to June 19, 1999
City and County of San Francisco 3 Printed at 9:45 AM on 63W9
Finance and Labor Committee Meeting Minutes June I 'K 1999
Heard in Committee Speakers Supervisor Ycc. Joe Lai ey, Home Rich. North oj Market Senior I
Tom Phillips; Harry Goldfinger. Golden Gate Senior Services; Dorinda Otte) < I SE, Jim Mick. Coalition for
Aging; Nick Lederer. Golden Gate Senior Services, Arthur Jackson. Richard Oow, Coalition on Homelessness
(COH); Rebecca Graff, COH; Sarah Short. COH; Rosemary I huh. (Oil Robert Haaland COH
Wooding, COH; Judy Appel. Staff Attorney. COH. Mara Raider (OH Shannon Keyton Attorney COH, Mary
Kate Connors, Police Crisis Intervention Program. Darren Lewis. (Oil. Matt Brown, St Peters Housing, Ron
Periz, Treatment on Demand Council. Jason Albertson, Jennifer Friedenbach, COH, Rebecca Vilkersen,
CURE. COH; Dorothy Norman; Carta Amader. La Raza Centro. Mark Stanford, Local 535, I alone I illela.
Victor Santis, 30th Street Senior Services. Frances Hums. David Drabblo, Paramedic. Fire Department. John
Frank; Dale Butler; Lonnie Ruth Slunskv. Jim Keck. l.arn BradshoM Dennis ( base Wanes Project, Yvonne
Kirols. Citizens In Action For Personal Assistance. Mitch Jesench. Independent Living Center, J Murray
Fox, Legion of Honor Museum; Ernestine Weiss, Kathv Wolfe, Richard Rothman Hob Planthold Man Ruth
Gross; Jonna Ramey. St. Mary's Park Improvement Club. Marvbeth Wallace, Coleman Advocates. Man
Harris; Garrett Jenkins, North of Market Planning Coalition. Laverne Hawkins Coleman Advocates; Tom
Nolan, Executive Director Project Open Hand. Carolyn Galbreat, Randall Museum. Karen Crommie, Friends
of City Planning; Romona Albright. Friends of City Planning, Gilda Serrano Parent Advocate Richard
Hanlin; Joan Pier son. Parent Advocate, Lanora Hamilton, Aaron Peslin, Gerry Crowley, Telegraph Hill
Dwellers; Jamie Motley, Walenherg High School; R Jamal. Youth Making a Change; Ta/ James. Coleman
Advocates for Children; Herbert Aliga, ShireenLee, Dr Christina Ma. Pediatrician, UCSF, Mane Ciepiela.
OMI/Excelsior Beacon Center, Naz Johnson, Balboa High School. Dillion Scott. Balboa High School. I •
Hobson. S.F. Tomorrow; Emanuel Smith. Marcia Fornlla. Health Nurse, Balboa High .Si hool, Ann And*
Council of Neighborhood Librianes. Vera Hade, Susan Mara Scott Elsishans, Shanti Project, Dunne Poe.
Black Coalition on AIDS; Female. La Raza. Female Health Services for the Disabled Margaret Jereme,
Association for Education of Children. Female. Family ChUdcare Provider Western Addition; Judion Baker
South of Market ChUdcare, Maureen Carew, Amy Stukdls. teacher. South Of Market Center, Female. Health
Services, Children with Disabilities; David McGuire. Hill Sorro. Tessie Topal, Jewish Family Children
Services; Camilla Ng; Winnie Yu, Parrel! Poe. Native American AIDS Project, Michael Sanders Mark
Foreman; John Garcia; Perasha Zand. Nurse. Native American AIDS Protect Martin Wakatu, Din
Native American AIDS Project; Mabel Seto. ChUdcare provider. Jamie Huang ChUdcare worker Merry
Fowler, Moscone Park Playground. Sue Chang. Director. Moscone Park Playground, Nancy Ho, Amy Yam
W'ai Yee. Qum Meika. Lisa Chan. Carol Sletman. Library Commissioner. Barbara Berman. Friends of
Library; Vas Prabhu. Director of Education. DeYoung Museum. Man Pat Cress. Chen! Bancroft. Autumn
Payne; Marvin Melchor Bustamonte, Public Health. San Francisco General Hospital (SFGH); Neil Gendel.
Maria Luz Torres; Tracey Faulkner; Nora Roman, nurse. SFGH, Man Brown. Adhdalla Megahed. Mission
Rock Shelter; Janie Hanagan; Jim Hartman. De Young Museum. Joe Wilson. Coleman Advocates. Stan Kean
Reuben Goodman; Bruce. American Institute of Architects. Pauline Lo. M Ho. Family Network, Mrs Zhu;
Ma Jin; Amozr Lam; Mrs. Wong; Mrs Lee; Ma Ho; Celia Siason; Emily Sauto; Carmen Maldonad
Dawson, Director. Randall Museum; Jaho Oschenvhz. Local 790; Iris Biblowitz. RN; Elizabeth Kirchner.
Ashbury Neighborhood Council; Linda Joseph. Local 535; Irma Penate, ChUdcare Provider. Mil hele Lundy.
S.F. Family ChUdcare; Michael Lyon; SFGH. Walker Langston Dukes. SFGH. Geraldo Ramos. Circle of
Care; Norman Telson. Executive Director. Filipino-American Council. Fern Ebeling. R\ Steve Currier.
Excelsior Youth Center; Carolyn Washington. Bayview Sr Center. Steve Bingham. National Coalition for
Youth; Leslie Ramos. Balboa High School. Rebecca Evans. Commission on the Environment. Anth
Bafondess. We The People. Continued to June 22. 1999
CONTINUED.
ADJOURNMENT
The meeting adjourned at 1:15 p.m.
City and County of San Francisco 4 Printed at 9:4 S AM on 6/30/99
x^^ Citv and Countv of San Francisco Cit > Hal1
/v/Sfi^X \ Carlton B.
( s f &#£&¥£ Meeting Minutes Goodiett piace
l"L MK?~i& *M )■") San Francisco, CA
ViStefS^ Finance and Labor Committee 94102-4689
\£Fs~f~o5x Members: Supervisors Leland Yee, Sue Bierman and Tom Ammiano
Clerk: Mary Red
Tuesday, June 22, 1999 1:00 PM City Hall, Room 263
Budget Review Hearings
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 1:20 p.m.
City and County of San Francisco I Printed at 11:44 AM on 6.10V9
Finance and Labor Committee Meeting Minutes June 22, 1999
991065 | Budget, 1999-20001
Hearing to consider 1999-2000 Budget.
General Administration and Finance
Administrative Services (ADM)
Convention Facilities Management (CFM)
Elections (REG)
Mayor (MYR)
Children, Youth & Families (CHF)
Business & Economic Development (ECN)
Environment (ENV)
Board of Supervisors (BOS)
Ethics Commission ( ETI I )
City Attorney (CAT)
Treasurer/Tax Collector! I I X |
Controller (CON)
Assessor/Recorder (ASR)
City Planning (CPC)
Board of Appeals (I' AH)
Rent Arbitration Board (RNT)
Civil Service Commission (CSl I
Human Resources (HRD)
Retirement System (RET)
Public Protection
Trial Courts (CRT)
Juvenile Probation (JUV)
Law Library (LLB)
County Agriculture/Weights & Measures (AGW)
Coroner (CME)
Animal Care and Control (ANC)
Public Administrator/Guardian (PAG)
District Attorney (DAT)
Public Defender (PDR)
Sheriff (SHF)
Adult Probation (ADP)
Fire Department (FIR)
Police (POL)
6/1/99, RECEIVED AND ASSIGNED to Finance and 1 abor Committee
6/15/99, CONTINUED Heard in Committee Speakers Supervisor Vec. Harvey Rose, Budget Analyst. Supervisor Ammiano. Mathew
Hymel, Mayor's Office. Ed Harrington, Controller; Supervisor Bierman Department representatives Steve Nelson, Administrative
Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities Management. Naomi Nishioka, Acting Director, Elections.
Deborah Alverez, Director, Department of Children, Youth & Families, Monique Moyer, Mayor's Office, Ann Mane Conroy, Director,
Treasure Island; Francesca Vietor, Director, Department of Environment. Gloria Young. Clerk of the Board. Ginnv Yida. Director.
Ethics Commission; Louise Rcnne, City Attorney; Susan Leal, Treasurer, Richard Sullivan, Tax Collector. Tommie Whitlow, Assistant
Assessor; Gerald Green, Director of Planning; Robert Feldman. Board of Appeals; Joe Grubb, Executive Director. Rent Arbitration
Board; Kate Favetti. Executive Officer. Civil Service Commission. Andrea Gourdine. Director. Human Resources. Claire Murphy,
General Manager, Retirement System; Alan Carlson, Trial Courts. Jessie Williams, Chief Probation Officer. Juvenile Probation. Marsha
Bell, Librarian, Law Library, David Fneders. Commissioner of AgricullureAVeights & Measures. Dr Boyd Stevens. Medical Fxaminer.
Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez, Public Administrator Public Guardian. Terence Hallinan.
District Attorney; Jeff Brown, Public Defender; Michael Hennessey, Sheriff; Armando Cervantes, Chief Probation Officer, Adult
Probation; Robert Demmons, Chief. Fire Department, Ernie Pnndel, Budget Analyst office. Ken Bruce. Budget Analyst office, Fred
Lau, Chief, Police Department Public: Larry Latimore. POWER; Jake McCulder Continued to June 16, 1999
City and County of San Francisco 2 Printed at 11:44 AM on 6,30/99
Finance and Labor Committee Meeting Minutes June 22, 1999
6/16/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Robert Jenkins, Director, Steinhart Aquarium,
Academy of Sciences; Supervisor Yee; Ken Bruce, Budget Analyst's office; Rich Newirth, Director, Art Commission; Beth Murray,
Managing Director, War Memorial; Steve Dykes, Director of Administrations, Fine Arts Museum; Dede Wilsey, President Fine Arts
Commission; Emily Sano, Director, Asian Art Museum; Supervisor Bierman; Susan Hildreth, Deputy City Librarian, Public Library;
Joel Robinson, Acting General Manager, Recreation and Park; Mark Carlson, Deputy Director, Public Works; Frank Chiu, Director,
Department of Building Inspection; John Martin, Director, Airport; Doug Wong, Executive Director, Port; Stuart Sunshine, Director,
Parking and Traffic Department; Julia Dawson, Finance, DPT, Julia Friedlander, Acting Director Telecommunications & Information
Services; Mike Martin, Acting Director, Emergency Communications Department; Andy Moran, General Manager, Public Utilities
Commission; Michael Bums, General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rudy Alverez,
Finance Director, Unified School District. Public: Janan New, Executive Director S.F. Apartment Association; Betsy Thager; Carol
Kocivar., PTA; Leah Shahum; Marvis Phillips; Brad; Matt Brown, St. Peters Housing; Jung Kwok Ching; Mr. Guo, Chinese Progressive
Association; Shuang Kuang; Jin Chi Zhso. Continued to June 17, 1999.
6/17/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Dr Mitchell Katz, Director, Department of
Public Health; Supervisor Yee; Supervisor Ammiano; Ed Harrington, Controller; David Ishida, Executive Director, Commission on the
Aging; Supervisor Bierman; Marivic Bamba, Executive Director, Human Rights Commission; Sonia Melara, Executive Director,
Commission on Status of Women; Ken Bruce, Budget Analyst's Office; Will Lightboume, Executive Director, Department of Human
Services; Mathew Hymel, Mayors Office. Public: Gilbert Crisswell. Continued to June 19, 1999.
6/19/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Joe Lacey; Bemie Rush, North of Market Senior Center; Tom
Phillips; Harry Goldfinger, Golden Gate Senior Services, Dorinda Ottey, CASE; Jim Elick, Coalition for Aging; Nick Lederer, Golden
Gate Senior Services, Arthur Jackson, Richard Oow, Coalition on Homelessness (COH); Rebecca Graff, COH; Sarah Short, COH;
Rosemary Dady, COH; Robert Haaland, COH; Miguel Wooding, COH; Judy Appel, Staff Attorney, COH; Mara Raider, COH; Shannan
Keyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program. Darren Lewis, COH; Matt Brown, St Peters Housing;
Ron Penz, Treatment on Demand Council, Jason Albertson; Jennifer Friedenbach, COH, Rebecca Vilkersen, CURE, COH; Dorothy
Norman; Carla Amader, La Raza Centra; Mark Stanford, Local 535; Valorie Villela; Victor Santis, 30th Street Senior Services; Frances
Bums; David Drabblo, Paramedic, Fire Department; John Frank; Dale Butler, Lonnie Ruth Slunsky; Jim Keck; Larry Bradshaw; Dennis
Chase, Names Project; Yvonne Kirols, Citizens In Action For Personal Assistance; Mitch Jeserich, Independent Living Center; J.
Murray Fox, Legion of Honor Museum; Ernestine Weiss; Kathy Wolfe; Richard Rothman; Bob Planthold; Mary Ruth Gross; Jonna
Ramey, St. Mary's Park Improvement Club; Marybeth Wallace, Coleman Advocates; Mary Harris; Garrett Jenkins, North of Market
Planning Coalition; Laverne Hawkins, Coleman Advocates; Tom Nolan, Executive Director Project Open Hand; Carolyn Galbreat,
Randall Museum; Karen Crommie, Friends of City Planning; Romona Albright, Friends of City Planning; Gilda Serrano, Parent
Advocates, Richard Hanlin; Joan Pierson, Parent Advocate; Lanora Hamilton; Aaron Peslin; Gerry Crowley, Telegraph Hill Dwellers;
Jamie Motley, Walenberg High School; R. Jamal, Youth Making a Change; Taj James, Coleman Advocates for Children; Herbert Aliga;
Shireen Lee; Dr. Christina Ma, Pediatrician, UCSF; Marie Ciepiela, OMI/E.xcelsior Beacon Center; Naz Johnson, Balboa High School;
Dillion Scott, Balboa High School; Fred Hobson, S F. Tomorrow; Emanuel Smith; Marcia Forrilla, Health Nurse, Balboa High School;
Ann Anderson, Council of Neighborhood Librianes; Vera Haile; Susan Mara; Scott Elsishans, Shanti Project; Duane Poe, Black
Coalition on AIDS; Female, La Raza; Female, Health Services for the Disabled; Margaret Jereme, Association for Education of
Children; Female, Family Childcare Provider, Western Addition; Judion Baker, South of Market Chi Idcare; Maureen Carew; Amy
Stukills, teacher, South Of Market Center; Female, Health Services, Children with Disabilities; David McGuire; Bill Sorro; Tessie
Topal, Jewish Family Children Services; Camilla Ng, Winnie Yu; Darrell Poe, Native American AIDS Project; Michael Sanders; Mark
Foreman; John Garcia; Perasha Zond, Nurse, Native American AIDS Project; Martin Wakatu, Director, Native American AIDS Project;
Mabel Seto, Childcare provider, Jamie Huang, Childcare worker. Merry Fowler, Moscone Park Playground; Sue Chang, Director,
Moscone Park Playground; Nancy Ho, Amy Yam; Wai Yee; Qum Meika, Lisa Chan; Carol Steiman, Library Commissioner, Barbara
Berman, Friends of Library; Vas Prabhu, Director of Education, De Young Museum, Mary Pat Cress; Cheryl Bancroft; Autumn Payne;
Marvin Melchor Bustamonte, Public Health, San Francisco General Hospital (SFGH); Neil Gendel, Maria Luz Torres; Tracey Faulkner;
Nora Roman, nurse, SFGH, Mary Brown; Adbdalla Megahed, Mission Rock Shelter; Janie Hanagan; Jim Hartman, De Young Museum;
Joe Wilson, Coleman Advocates; Stan Kean; Reuben Goodman, Bruce, American Institute of Architects; Pauline Lo; M. Ho, Family
Network; Mrs Zhu, Ma Jin; Amozr Lam, Mrs Wong; Mrs. Lee; Ma Ho, Celia Siason; Emily Sauto, Carmen Maldonado; Amy Dawson.
Director, Randall Museum, Jaho Oscherwhz, Local 790; Iris Biblowitz, RN; Elizabeth Kirchner; Ashbury Neighborhood Council; Linda
Joseph, Local 535; Irma Penate, Childcare Provider; Michele Lundy, S.F. Family Childcare; Michael Lyon; SFGH; Walker Langston
Dukes, SFGH; Geraldo Ramos, Circle of Care, Norman Telson, Executive Director, Filipino-American Council; Fern Ebeling, RN;
Steve Cumer, Excelsior Youth Center; Carolyn Washington, Bayview Sr. Center, Steve Bingham, National Coalition for Youth, Leslie
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment, Anthony Bafondess, We The People Continued to
June 22, 1999.
City and County of San Francisco 3 Printed at 1 1:44 AM on WJOsW
Finance and Labor Committee Meeting Minutes June 22, 1999
Heard in Committee. Speakers: Supen>isor Yee, Harvey Rose, Budget Analyst; Supervisor Ammtano, Mathcw
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman Department representatives Stew
Nelson, Administrative Services; Louise Renne. City Attorney , Susan Leal, Treasurer. Doris Ward. Assessor;
Gerald Green, Director of Planning; Joe Grubb, Executive Director, Rent Arbitration Board. Andrea
Gourdine, Director, Human Resources; Claire Murphy. General Manager, Retirement System, Alan Carlson.
Trial Courts; Jessie Williams, Chief Probation Officer, David Frieders, Commissioner of Agriculture/Weights
& Measures; Herbert Hawley. Administrator. Medical Examiner's (J/ln e, ( art Friedman Dire* tor. Animal
Care and Control; Ricardo Hernandez, Public Administrator/Public Guardian, Terence Hallinan. District
Attorney; Jeff Brown, Public Defender; Michael Hennessey. Sheriff Fred Brousseau, Budget Analyst's off
Lee Sampson, Business Manager, Adult Probation. Robert Demmons, Chief, lire Department. Ernie Prindel.
Budget Analyst office; Ken Bruce, Budget Analyst office, Debra Ward, Finaiu nil Offit er Fire Department.
Fred Lau, Chief, Police Department. Public: Larry Latimore, POWER. Jake McCulder The Assessor and
City Planning Department was continued to June 24, 1999. The meeting was continued to June 23. 1999
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 4:54 p m
Cay and County of San Francisco 4 Printed at 11:44 AM on 6. 30.V9
/0 S£i! ^ c \ City and County of San Francisco Cit y Ha11
A/A— %— rN?A J J lDr Carlton B.
fflj&Gz&W Meeting Minutes Goodiett piace
[2 1 MSZi&gM liil San Francisco, CA
v^fiSgy/' Finance and Labor Committee 94102^689
x^Tj^x Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano
Clerk: Mary Red
Tuesday, June 22, 1999 5:30 PM City Hall, Room 263
Special Budget Hearings, Public Testimony
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
The meeting time will be from 5:30 p.m. - 7:00 p.m.
Meeting Convened
The meeting convened at 5:40 p.m.
City and County of San Francisco 1 Printed at hS9 PM on 630/99
Finance and Labor Committee Meeting Minutes June 22, 1999
991065 |Budget, 1999-2000]
Hearing to consider 1999-2000 Budget.
General Administration and Finance
Administrative Services (ADM)
Convention Facilities Management (CFM)
Elections (REG)
Mayor (MYR)
Children, Youth & Families (CHI i
Business & Economic Development (ECN)
Environment (ENV)
Board of Supervisors (BOS)
Ethics Commission (ETH)
City Attorney (CAT)
Treasurer/Tax Collector(TTX)
Controller (CON)
Assessor/Recorder (ASR)
City Planning (CPC)
Board of Appeals (PAB)
Rent Arbitration Board (RNT)
Civil Service Commission (CSC)
Human Resources (HRD)
Retirement System (RET)
Public Protection
Trial Courts (CRT)
Juvenile Probation (JUV)
Law Library (LLB)
County Agriculture/Weights & Measure i .V rW i
Coroner (CME)
Animal Care and Control (ANC)
Public Administrator Guardian (PAG)
District Attorney (DAT)
Public Defender (PDR)
Sheriff (SHF)
Adult Probation (ADP)
Fire Department (FIR)
Police (POL)
Culture and Recreation
County Education Office (USD)
Academy of Sciences (SCI)
Art Commission (ART)
War Memorial (WAR)
Fine Arts Museums (FAM)
Asian Art Museum (AAM)
Public Library (LIB)
Recreation and Park Commission (REC)
Public Works, Transportation and Commerce
Public Works (DPW)
Building Inspection (DBI)
City and County of San Francisco 2 Printed at 1:59 PM on 6/30/99
Finance and Labor Committee Meeting Minutes June 22, 1999
Airport (AIR)
Port (PRT)
Parking and Traffic (PTC)
Telecommunications & Information Services (TIS)
Emergency Communications Department (ECD)
Public Utilities Commission (PUC)
Light, Heat and Power (LHP)
Hetch Hetchy Project (HHP)
Water (WTR)
Clean Water (CWP)
Public Transportation - Municipal Railway (DPT)
San Francisco Redevelopment Agency
Human Welfare
Commission on Aging (AGE)
Human Rights Commission (HRC)
Commission on the Status of Women (WOM)
Human Services (DHS)
Community Health - Department of Public Health
Community Health Network (HCN)
Public Health (HPH)
General City Responsibilities (GEN)
Capital Projects (CAP)
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
6/15/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano, Mathew
Hymel, Mayor's Office; Ed Harrington, Controller; Supervisor Bierman. Department representatives: Steve Nelson, Administrative
Services; Ed Lee, Director, Purchasing; John Marks, Convention Facilities Management, Naomi Nishioka, Acting Director, Elections;
Deborah Alverez, Director, Department of Children, Youth & Families; Monique Moyer, Mayor's Office, Ann Mane Conroy, Director,
Treasure Island; Francesca Vietor, Director, Department of Environment; Gloria Young, Clerk of the Board; Ginny Vida, Director.
Ethics Commission; Louise Renne, City Attorney; Susan Leal, Treasurer; Richard Sullivan, Tax Collector; Tommie Whitlow, Assistant
Assessor; Gerald Green, Director of Planning; Robert Feldman. Board of Appeals; Joe Grubb, Executive Director, Rent Arbitration
Board; Kate Favetti, Executive Officer, Civil Service Commission; Andrea Gourdine, Director, Human Resources; Claire Murphy.
General Manager, Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer. Juvenile Probation, Marsha
Bell. Librarian, Law Library; David Frieders, Commissioner of Agriculture/Weights & Measures; Dr. Boyd Stevens, Medical Examiner.
Carl Friedman, Director, Animal Care and Control; Ricardo Hernandez, Public Administrator Public Guardian; Terence Hallinan.
District Attorney, Jeff Brown, Public Defender, Michael Hennessey, Sheriff; Armando Cervantes, Chief Probation Officer, Adult
Probation; Robert Demmons, Chief, Fire Department; Ernie Pnndel, Budget Analyst office; Ken Bruce, Budget Analyst office; Fred
Lau, Chief, Police Department. Public Larry Latimore, POWER, Jake McCulder. Continued to June 16, 1999.
6/16/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Robert Jenkins, Director, Steinhart Aquarium,
Academy of Sciences; Supervisor Yee, Ken Bruce, Budget Analyst's office; Rich Newirth, Director, Art Commission, Beth Murray,
Managing Director, War Memorial, Steve Dykes, Director of Administrations, Fine Arts Museum; Dede Wilsey. President Fine Arts
Commission, Emily Sano, Director, Asian Art Museum; Supervisor Bierman; Susan Hildreth. Deputy City I ibranan, Public Library;
Joel Robinson, Acting General Manager, Recreation and Park, Mark Carlson, Deputy Director, Public Works; Frank Chiu. Director,
Department of Building Inspection, John Martin, Director, Airport; Doug Wong. Executive Director, Port; Stuart Sunshine, Director,
Parking and Traffic Department; Julia Dawson, Finance, DPT; Julia Fnedlander, Acting Director Telecommunications & Information
Services; Mike Martin, Acting Director, Emergency Communications Department; Andy Moran, General Manager, Public Utilities
Commission; Michael Bums, General Manager, Municipal Railway; Jim Morales, Director, Redevelopment Agency; Rud> Alverez,
Finance Director, Unified School District. Public: Janan New, Executive Director S.F. Apartment Association; Betsy Thager; Carol
Kocivar., PTA; Leah Shahum, Marvis Phillips; Brad, Matt Brown, St. Peters Housing; Jung Kwok Ching; Mr. Guo, Chinese Progre>si\c
Association; Shuang Kuang; Jin Chi Zhso. Continued to June 17, 1999.
6/17/99, CONTINUED. Heard in Committee Speakers: Harvey Rose, Budget Analyst; Dr Mitchell Katy. Director. Department of
Public Health; Supervisor Yee, Supervisor Ammiano; Ed Harrington. Controller, l)a\ul Ishida, Executive Director, Commission on the
Aging; Supervisor Bierman; Marivic Bamba, Executive Director, Human Rights Commission, Soma Melara. Executive Director,
Commission on Status of Women, Ken Bruce, Budget Analyst's Office. Will Lightboume. Executive Director, Department of Human
Services; Mathew Hymel, Mayors Office. Public: Gilbert Crisswell Continued to June 19, 1999.
City and County of San Francisco J Printed at 1:59 PM on 63WV9
Finance and Labor Committee Meeting Minutes June 22, 1999
6/19/99, CONTINUED Heard in Committee Speakers: Supervisor Yee. Joe Lacey, Bcmic Rush. North of Market Senior Center, Tom
Phillips, Hany Goldfinger, Golden Gale Senior Sen ices. Donnda Ottey, I ASI , Jim I lick, ( oalition lor Aging; Nick I cdercr. Golden
Gate Senior Services; Arthur Jackson, Richard Oow, Coalition on Homelessncss (COH); Rebecca < >ral I. ( OH; Sarah shun. ( OH;
Rosemary Dady, COH; Robert Haaland, COH, Miguel Wooding, COH, Judy Appcl. Staff Attorney, ( OH; Mara Raider. (Oil. Shannan
Kcyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program Darren Lewis, < Oil, Matt Hrimn. St Peters Housing.
Ron Pcriz, Treatment on Demand Council, Jason Albcrtson, Jennifer Fricdcnbach. COH; Rebecca Vilkcrscn. CURE, COH; Dorothy
Norman; Carla Amadcr, La Raza Centro, Mark Stanford, Local 535, V alone Villela. VidOl Santis. 30th Street Senior Services. I ranees
Bums; David Drabblo, Paramedic, lire Department. John frank. Dale Butler; 1 onnie Ruth Slunsky. Jim Keck. I arry Bradshaw. Dennis
Chase, Names Project, Yvonne Kirols, Citizens In Action lor Personal Assistance. Much Jesench, Independent Living Center, J
Murray Fox, Legion of Honor Museum, Lmestine Weiss, Kathy Wolfe, Richard Rothman, Hob Planthold. Mary Ruth Gross. Jonna
Ramey, St Mary's Park Improvement Club. Marybcth Wallace, Coleman Advocates, Mar, Hams. Garret) Jenkins. North of Market
Planning Coalition, Laveme Hawkins, Coleman Advocates, lorn Nolan. I \ecuti\e Director Project Open Hand. Carolyn Galbrcat.
Randall Museum; Karen Crommic, friends of City Planning, Romona Albright, Fncnds of City Planning, Gilda Serrano. Parent
Advocates, Richard Hanlin, Joan Pierson, Parent Advocate, Lanora Hamilton, Aaron Peslm. ( ien ■ craph Hill Dwellers.
Jamie Motley, Walenberg High School, R Jamal, Youth Making a Change. Taj James, Coleman Advocates for Children, Herbert Aliga.
Shireen Lee, Dr Christina Ma. Pediatrician, UCSF, Mane Ciepiela. OMI Excelsior Beacon ( enter, Na/ Johnson. Balboa High School,
Dillion Scott, Balboa High School, Fltd Hobson, S F Tomorrow, Fmanuel Smith. Marcia I omlla. Health Nurse. Balboa High School,
Ann Anderson, Council of Neighborhood Libnancs, \ era llaile. Susan Mara. Scott ElsishaiU, Shanti Project. Duane Poe, Black
Coalition on AIDS, Female, La Raza, Female, Health Services for the Disabled. Margaret Jereme, Association for I ducation of
Children, Female, Family Childcare Provider, Western Addition. Judion Baker, South of Market Childcare; Maureen Carcw, Amy
Stukills, teacher, South Of Market Center, Female, Health Services. Children with Disabilit lessic
Topal, Jewish Family Children Services. ( amilla Ng. Winnie Yu. Darrcll Poe. Native Amencan AIDS Project. Michael Sanders. Mark
Foreman; John Garcia; Perasha Zond. Nurse. Native American AIDS Project. Martin Wakalu. Director. Native Amencan AIDS Project.
Mabel Seto, Childcare provider. Jamie Huang, Childcare worker. Men) 1 owler, Mosconc I'jrk Playground; Sue Chang, Director,
Moscone Park Playground. Nancy Ho, Amy Yam, Wai Yee, Qum Meika. Lisa Chan. Carol Sleiman. I ihrary Commissioner. Barbara
Berman, Fnends of Library, Vas Prabhu. Director of I ducation, Dc Young Museum, Mars Pat ( rcss. Cheryl Bancroft, Autumn Payne,
Marvin Mclchor Bustamonte, Public Health. San Francisco General Hospital isl c ,11 1, Neil I lendel; Maria I uz Torres; Trace) Faulkner.
Nora Roman, nurse, SFGH, Mary Brown, Adbdalla Megahed, Mission Rock Shelter; Janic Hanagan, Jim Hartman. Dc Young Museum,
Joe Wilson. Coleman Advocates, Stan Kean. Reuben Goodman. Bruce, Amencan Institute of Architects. Pauline I 0; M Ho, I amily
Network; Mrs Zhu, Ma Jin; Amozr Lam. Mrs Wong. Mrs Lee; Ma Ho; Celia Siason; I mil) Sauto; Carmen Maid jwson.
Director, Randall Museum, Jaho Osehcrwhz, I ocal 790; Ins Biblowitz, RN. Elizabeth Kirchncr, Ashbury Ncighborhi>od Council. Linda
Joseph, Local 535, Irma Penate. Childcare Provider, Michele I und>. S I Family Childca: H. Walker I angston
Dukes, SFGH; Geraldo Ramos, Circle of Care. Norman Tclson. Executive Director. Fihpino-Amcncan Council. Fem Ebeli-
Steve Currier, Excelsior Youth Center; Carolyn Washington, Bay view Sr t enter. Steve Bingham. National Coalition for Youth, Leslie
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment, Anthony Uafondcss. We The People Continued to
June 22, 1999.
Heard in Committee. Speakers Supervisors Yee. Bierman, Ammiano, Rebecca Villarson. Jennifer
Friedenbach, Coalition on Homelessness (COH); Margaret Brodkm. Coleman Advocates, Stephen Bingham.
National Center for Youth Law; Lana Berger. POWER. Karen Sherr; Rand Qutnn. V California Immigrant
Rights Coalition; Roger Bazeleg, PTA; Sandra I anderpool, Guerrero House; David Graves. Kids-ln-Parks.
Deane Shokes. Stonestown YMCA. Alexander Vaughan. Mission M/( I Art Tapia. Coleman Advocates. Sue
Eisenberg. Self Help for the Elderly. Gerald dc Ryan. Deetje Boler; Zachary Wald. Bay Peas, Betsy Thaggard.
WalkSF; Leah Shaholm. SF Bicycle Coalition (SFBC); Ken Kelton. Pedsate. Kathirene Soriano. Homeless
Prenatal Program; James Morrison. WalkSF; Margaret Robbins, Manny Sunshine. I rban Elders Program.
Emily Drennen, SFBC; Joshua Switsky; WalkSF, In Katuna. SF State L niversin. President Gamma; Robert
Nash. POWER; Jon Winston; Martina Gillis. Darren Lewis. COH. Barbara Hughes. POWER. "Marlene."
POWER; "Garth." POWER; Ed Ealing. POWER Roxanne Trade. POWER. Julia Greenfield. Lawyer*
Committee for Civil Rights; Abdalla Megahed; Sue Cauthen. Sunshine Ordinance Task Force; David Pilpel.
Rescue MUNI; Pauline Peel. Seniors Disability Advisory Council. Martha Bridegum. COH; John Bergman.
POWER; Emma Harris. POWER; Michelle Michelson. Legal Aid Society . Ed Willard. POWER "Will B
Paidwell" (pseudonym). POWER. Continued to June 2.1 1999
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 7:00 p.m
City and County of San Francisco 4 Printed at 1:59 PM on 6,30*9
City and County of San Francisco city Han
J J 1 Dr. Carlton B
Meeting Minutes Goodiett place
San Francisco, CA
Finance and Labor Committee 94102-4689
Members: Supervisors Leland Yee, Sue Merman and Tom Ammiano
Clerk: Mary Red
Wednesday, June 23, 1999 1 :00 PM City Hall, Room 263
Budget Review Hearings
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 1:09 p.m.
City and County of San Francisco I Printed at 3:52 PM on 6/30/99
Finance and Labor Committee Meeting Minttte\ June 23, 1999
991065 |Budget, 1999-2000]
Hearing to consider 1999-2000 Budget.
Culture and Recreation
County Education Office (USD)
Academy of Sciences (SCI)
Art Commission (ART)
War Memorial (WAR)
Fine Arts Museums (FAM)
Asian Art Museum (AAM)
Public Library (LIB)
Recreation and Park Commission (REC)
Public Works, Transportation and Commerce
Public Works (DPW)
Building Inspection (DH1)
Airport (AIR)
Port (PRT)
Parking and Traffic (PTC)
Telecommunications & Information Sen ices i TIS)
Emergency Communications Department (ECD)
Public Utilities Commission (PI ( ' i
Light. Heat and Power (I IIP)
Hetch Hetchy Project (HIIPi
Water (WTR)
Clean Water (CWP)
Public Transportation - Municipal Railway (DP I i
San Francisco Redevelopment Agency
6 1 99. RECEIVED AND ASSIGNED to Finance and Labor Commmcc
6/15/99, CONTINUED Heard in C o m mi tt e e, Speakers Supervisor: Yee; Harve) Rose, Budget Analyst. Supervisor Ammiano. Mathcu
Hymel, Mayor's Office, Ed Harrington. Controller, Supervisor Bierman Department representatives Mc\c Vclson, Administrative
Services; Ed Lee, Director, Purchasing. John Marks, Convention Facilities Management, Naomi Nishioka. Acting Director. Elections.
Deborah Alvcrez, Director, Department of Children. Youth & Families; Moniquc '■' I Iffice, Ann Mane Camay, Director.
Treasure Island. Franceses Victor. Director, Department of Environment, Gloria Young, Clerk of the Board. Ginny Vida. Director,
Ethics Commission. Louise Renne. Cit) Attorney; Susan Leal. Treasurer. Richard Sullivan. Tax Collector. Tommic Whitlow. Assistant
Assessor; Gerald Green. Director of Planning. Robert Fcldrnan. Board of Appeals. Joe Grubb. Ex ec uti ve Director. Rent Arbitration
Board, Kate Favetti, Executive Officer, Civil Service Commission, Andrea Gourdine, Director, Human Resources, Claire Murphy.
General Manager, Retirement System, Alan Carlson, Trial Courts. Jessie Williams. Chief Probation Officer. Juvenile Probation. Marsha
Bell, Librarian, law Library, David Fneders, Commissioner of Agriculture- Weights & Measures. Dr Boyd Stevens. Medical Examiner.
Carl Friedman, Director, Animal Care and Control. Ricardo Hernandez. Public Administrator Public Guardian. Terence Hallman.
District Attorney, Jeff Brown, Public Defender. Michael Hennessey. Sheriff. Armando Cervantes. Chief Probation Officer. Adult
Probation; Robert Demmons. Chief. Fire Department. Ernie Pnndel. Budget Analyst office. Ken Bruce. Budget Analyst office. Fred
Lau, Chief. Police Department Public: Larry Lalimore. POWER. Jake McCulder Continued to June 16. 1999
6/16/99, CONTINUED Heard in Committee Speakers Harvey Rose, Budget Analyst. Robert Jenkins. Director. Steinhart Aquanum.
Academy of Sciences, Supervisor Yec, Ken Bruce, Budget Analyst's office. Rich Newirth. Director. An Commission. Beth Murray,
Managing Director. War Memorial. Steve Dykes. Director of Administrations, Fine Arts Museum, Dcdc Wilsey. President Fine Arts
Commission; Emily Sano, Director. Asian Art Museum. Supervisor Bierman. Susan Hildreth. Deputy City Librarian, Public Library.
Joel Robinson, Acting General Manager. Recreation and Park. Mark Carlson, Deputy Director. Public Works. Frank Chiu. Director.
Department of Building Inspection, John Martin, Director, Airport, Doug Wong. Executive Director. Port. Stuart Sunshine, Director,
Parking and Traffic Department; Julia Dawson, Finance. DPT. Julia Fnedlandcr. Acting Director Telecommunications & Information
Services; Mike Martin, Acting Director, Emergency Communications Department. Andy Moran. General Manager. Public Utilities
Commission; Michael Bums, General Manager, Municipal Railway, Jim Morales, Director, Redevelopment Agency. Rudy AUcrcz,
Finance Director, Unified School District Public Janan Nc», Executive Director S F Apartment Association. Betsy Thager, Carol
Kocivar . PTA, Leah Shahum; Marvis Phillips. Brad. Matt Brown. St Peters Housing. Jung Kwok Ching, Mr Guo. Chinese Progressive
Association; Shuang Kuang, Jin Chi Zhso. Continued to June 17. 1999.
City and County of San Francisco 2 Printed at 3:52 FM on 6/30/99
Finance and Labor Committee Meeting Minutes June 23, 1999
6/17/99, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Dr. Mitchell Katz, Director, Department of
Public Health; Supervisor Yee; Supervisor Ammiano; Ed Harrington, Controller; David Ishida, Executive Director, Commission on the
Aging; Supervisor Bierman; Marivic Bamba, Executive Director, Human Rights Commission; Sonia Melara, Executive Director,
Commission on Status of Women; Ken Bruce, Budget Analyst's Office; Will Lightboume, Executive Director, Department of Human
Services; Mathew Hymel, Mayors Office. Public: Gilbert Cnsswell. Continued to June 19, 1999.
6/19/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee, Joe Lacey, Bemie Rush, North of Market Senior Center; Tom
Phillips; Harry Goldfinger, Golden Gate Senior Services; Donnda Ottey, CASE; Jim Elick, Coalition for Aging; Nick Lederer, Golden
Gate Senior Services; Arthur Jackson; Richard Oovv, Coalition on Homelessness (COH); Rebecca Graff. COH; Sarah Short, COH;
Rosemary Dady, COH; Robert Haaland, COH; Miguel Wooding, COH; Judy Appel, Staff Attorney, COH; Mara Raider, COH; Shannan
Keyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program. Darren Lewis, COH; Matt Brown, St. Peters Housing;
Ron Penz, Treatment on Demand Council; Jason Albertson; Jennifer Fnedenbach, COH, Rebecca Vilkersen, CURE, COH, Dorothy
Norman; Carla Amader, La Raza Centro; Mark Stanford, Local 535; Valorie Villela; Victor Santis, 30th Street Senior Services; Frances
Bums; David Drabblo, Paramedic, Fire Department, John Frank; Dale Butler; Lonnie Ruth Slunsky; Jim Keck; Larry Bradshaw, Dennis
Chase, Names Project; Yvonne Kirols, Citizens In Action For Personal Assistance; Mitch Jeserich, Independent Living Center; J.
Murray Fox, Legion of Honor Museum; Ernestine Weiss, Kathy Wolfe; Richard Rothman; Bob Planthold; Mary Ruth Gross; Jonna
Ramey, St. Mary's Park Improvement Club; Marybeth Wallace, Coleman Advocates; Mary Hams; Garrett Jenkins, North of Market
Planning Coalition, Laveme Hawkins; Coleman Advocates; Tom Nolan, Executive Director Project Open Hand; Carolyn Galbreat,
Randall Museum; Karen Crommie, Friends of City Planning; Romona Albright, Friends of City Planning; Gilda Serrano, Parent
Advocates; Richard Hanlin; Joan Pierson, Parent Advocate; Lanora Hamilton; Aaron Peslin; Gerry Crowley, Telegraph Hill Dwellers;
Jamie Motley, Walenberg High School; R. Jamal, Youth Making a Change; Taj James, Coleman Advocates for Children; Herbert Aliga;
Shireen Lee; Dr Christina Ma, Pediatrician, UCSF; Marie Ciepiela, OMI/Excelsior Beacon Center; Naz Johnson, Balboa High School;
Dillion Scott, Balboa High School; Fred Hobson, S.F. Tomorrow; Emanuel Smith; Marcia Fomlla, Health Nurse, Balboa High School;
Ann Anderson, Council of Neighborhood Libnanes; Vera Haile; Susan Mara, Scott Elsishans, Shanti Project; Duane Poe, Black
Coalition on AIDS; Female, La Raza; Female, Health Services for the Disabled; Margaret Jereme, Association for Education of
Children; Female, Family Childcare Provider, Western Addition; Judion Baker, South of Market Childcare; Maureen Carew; Amy
Stukills, teacher. South Of Market Center; Female, Health Services, Children with Disabilities; David McGuire; Bill Sorro; Tessie
Topal, Jewish Family Children Services; Camilla Ng; Winnie Yu; Darrell Poe, Native American AIDS Project, Michael Sanders; Mark
Foreman; John Garcia; Perasha Zond, Nurse, Native American AIDS Project; Martin Wakatu, Director, Native American AIDS Project;
Mabel Seto, Childcare provider; Jamie Huang. Childcare worker; Merry Fowler, Moscone Park Playground; Sue Chang, Director,
Moscone Park Playground; Nancy Ho; Amy Yam; Wai Yee; Qum Meika; Lisa Chan; Carol Steiman, Library Commissioner; Barbara
Berman, Friends of Library; Vas Prabhu, Director of Education, De Young Museum; Mary Pat Cress; Cheryl Bancroft; Autumn Payne;
Marvin Melchor Bustamonte, Public Health, San Francisco General Hospital (SFGH), Neil Gendel; Maria Luz Torres; Tracey Faulkner;
Nora Roman, nurse, SFGH; Mary Brown; Adbdalla Megahed, Mission Rock Shelter; Janie Hanagan. Jim Hartman, De Young Museum;
Joe Wilson. Coleman Advocates; Stan Kean; Reuben Goodman; Bruce, American Institute of Architects; Pauline Lo; M. Ho, Family
Network; Mrs. Zhu; Ma Jin; Amozr Lam; Mrs. Wong; Mrs. Lee; Ma Ho; Celia Siason; Emily Sauto; Carmen Maldonado, Amy Dawson,
Director, Randall Museum; Jaho Oscherwhz, Local 790; Iris Biblowitz, RN; Elizabeth Kirchner; Ashbury Neighborhood Council; Linda
Joseph, Local 535, lima Penate, Childcare Provider; Michele Lundy, S.F. Family Childcare, Michael Lyon; SFGH; Walker Langston
Dukes, SFGH; Geraldo Ramos, Circle of Care; Norman Telson, Executive Director, Filipino-Amencan Council; Fern Ebeling, RN;
Steve Cumer, Excelsior Youth Center; Carolyn Washington, Bayview Sr. Center; Steve Bingham, National Coalition for Youth; Leslie
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment; Anthony Bafondess, We The People. Continued lo
June 22, 1999.
6/22/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano, Mathew
Hymel, Mayor's Office; Ed Harrington, Controller, Supervisor Bierman. Department representatives: Steve Nelson, Administrative
Services; Louise Renne, City Attorney; Susan Leal, Treasurer; Doris Ward, Assessor; Gerald Green, Director of Planning; Joe Grubb,
Executive Director, Rent Arbitration Board; Andrea Gourdine, Director, Human Resources; Claire Murphy, General Manager,
Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer; David Frieders, Commissioner of
Agriculture/Weights & Measures, Herbert Hawley, Administrator, Medical Examiner's Office; Carl Friedman, Director, Animal Care
and Control; Ricardo Hernandez, Public Administrator/Public Guardian, Terence Hallinan, District Attorney; Jeff Brown, Public
Defender; Michael Hennessey, Sheriff; Fred Brousseau, Budget Analyst's office; Lee Sampson. Business Manager, Adult Probation;
Robert Demmons, Chief, Fire Department, Ernie Pnndel. Budget Analyst office; Ken Bruce, Budget Analyst office; Debra Ward.
Financial Officer, Fire Department; Fred Lau, Chief, Police Department. Public: Larry Latimore. POWER; Jake McCulder The
Assessor and City Planning Department was continued to June 24. 1999. The meeting was continued to June 23, 1999.
6/22/99, CONTINUED. Heard in Committee: Speakers: Supervisors Yee; Bierman; Ammiano; Rebecca Villarson, Jennifer
Friedenbach, Coalition on Homelessness (COH), Margaret Brodkin, Coleman Advocates, Stephen Bingham, National Center for Youth
Law; Lana Berger, POWER, Karen Sherr; Rand Quinn, N. California Immigrant Rights Coalition, Roger Bazcleg, PTA; Sandra
Vanderpool, Guerrero House, David Graves. Kids-ln-Parks, Deane Shokes. Stonestown YMCA; Alexander Vaughan, Mission YMCA;
Art Tapia, Coleman Advocates; Sue Eisenberg, Self-Help for the Elderly, Gerald de Ryan; Deetje Boler; Zachary Wald. UayPeds. Bets)
Thaggard, WalkSF; Leah Shaholm, SF Bicycle Coalition (SFBC); Ken Kelton, Pcdsafe; Kalhirene Sonano. Homeless Prenatal Program.
James Momson, WalkSF, Margaret Robbins; Manny Sunshine, Urban Elders Program; Emily Drenncn, SFBC; Joshua Swii.sk>.
WalkSF; Irv Katuna, SF Stale University, President Gamma; Robert Nash, POWER, Jon Winston, Martina Gillis, Darren I ewis, COH;
Barbara Hughes, POWER, "Marlene," POWER; "Garth," POWER; Ed Ealing, POWER, Roxanne Trade, POWER, Julia Greenfield.
Lawyers Committee for Civil Rights; Abdalla Megahed; Sue Cauthcn, Sunshine Ordinance Task Force; David Pilpcl. Rescue MUNI;
Pauline Peel, Seniors Disability Advisory Council; Martha Bndegum, COH, John Bergman, POWER. Emma Hams. POW1 R. Michelle
Michelson, Legal Aid Society; Ed Willard. POWER; "Will B. Paidwell" (pseudonym), POWER Continued to June 23, 1999.
City and County of San Francisco 3 Printed at 3:52 PM on 6rttW9
Finance and Labor Committee Meeting Minutes June 23, 1999
Heard in Committee. Speakers: Harvey Rose. Budget Analyst. Enrique Navas, San Francisco Unified School
District (SFUSD); Tim Tronson, SFUSD; Robert Jenkins. Director, Steinhart Aquarium, Academy ofScu
Supervisor Yee; Ken Bruce. Budget Analyst's office, Rich Newirth, Director. Art Commission, Supervisor
Bierman; Beth Murray, Managing Director, War Memorial. Steve Dykes, Director of Administrations, Fine
Arts Museum; Dede Wilsey. President, Fine Arts Commission F.mih Sano. Director, Asian Art Museum.
Supervisor Bierman; Susan Hildreth. Deputy City Librarian. Public Library. Supervisor Ammiano. Mathess
Hymel, Mayor's office; Debra Newman, Budget Analyst's office; Joel Robinson, Acting General Manager.
Recreation and Park; Mark Primeau. Director, Public Works; Frank Chut Director, Department of Building
Inspection; Marcus Perro, Deputy Director, Airport; Doug Wong. Executive Dire* tor. Port, Stuart Sunshine.
Director, Parking and Traffic Department; Julia Friedlander, Acting Director Telecommunications &
Information Services; Mike Martin, Acting Director. Emergent v Communications Department. Andy Moran.
General Manager, Public Utilities Commission; Michael Burns, General Manager. Municipal Railway
Continued to June 24, 1999.
CONTINUED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991132 (Redevelopment Agency Budget and Bonds|
Resolution approving the budget of the Redevelopment Agency of the City and County of San Francisco for
fiscal year 1999-2000, and approving the issuance by the Agency of Bonds in an aggregate principal amount
not to exceed $20,000,000 for the purpose of financing redevelopment activities in fiscal year 1999-2000.
(Redevelopment Agency)
(Fiscal impact.)
6/3/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers Haney Rose. Budget Analyst, Tiza G Peterson. Deputy Executive Director.
Redevelopment Agency Amended, (sec Budget Analyst report showing recommendations of Finance and
Labor Committee in file), and on page 2. beginning at line I 7, delete "as the Budget is show n in Exhibit "A "
attached hereto, which Exhibit "A " is incorporated herein and made a part hereof "
AMENDED.
To Board on July 12. 1999.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 3: 10 p.m.
City and Count}' of San Francisco 4 Printed at 3:f3 PM on 6/30/99
3
CITY AND COUNTY
Public Library,Gov't Info. Ctr., 5 th Fir.
Attn: Susan Horn
OF SAN FRANCISCO
30ARD OF SUPERVISORS
BUDGET ANALYST
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
June 21, 1999
TO: , Finance and Labor Committee
FROM: Budget Analyst
SUBJECT: June 23, 1999 Finance and Labor Committee Meeting
Item 2 - File 99-1132
The proposed resolution (a) would approve the budget of the San Francisco
Redevelopment Agency (SFRA) for Fiscal Year 1999-2000 and (b) would approve the
issuance of Tax Increment Bonds not to exceed $20 million.
Recommendation
Amend the proposed resolution to reflect the reductions recommended by the
Budget Analyst to the Mayor's Recommended Fiscal Year 1999-2000 budget for the
SFRA and approve the resolution as amended.
f/?^/ 1 ^
Harvey M. Rose
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakev
DOCUMENTS DEPT.
JUN 2 3 1999
SAN FRANCISCO
p UBLIC LIBRARY
x^^n City and County of San Francisco Cl * Ha "
/v/^S^\T\ J J lDr Carlton B.
/s/£l£,#\t\ Meeting Minutes Goodiett place
IsLSIiiAiJSl J - "/ San Francisco, CA
X'sffe^P^' Finance and Labor Committee 94102-4689
xIKTjjJx Members: Supervisors I. eland Yee, Sue Merman and Tom Ammiano
Clerk: Mary Red
Thursday, June 24, 1 999 1 :00 PM City Hall, Room 263
Budget Review Hearings
Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano.
Meeting Convened
The meeting convened at 1: 1 5 p.m.
City and County of San Francisco I Printtd at UiS2 AM on - I V9
Finance anil Labor Committee Mcctiiif; Minutes June 24, 1 999
991065 IBudget, 1999-2000|
Hearing to consider 1999-2000 Budget.
General Administration and Finance (Continued from 6'22/99)
Assessor/Recorder (ASR)
City Planning (CPC)
Human Welfare
Commission on Aging (AGE)
Human Rights Commission (HRC)
Commission on the Status of Women i \V( )\| i
Human Services (DHS)
Community Health - Department of Public llcjltli
Community Health Network (HCN)
Public Health (HPH)
General City Responsibilities (GEN)
Capital Projects (CAP)
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
6/15/99, CONTINUED Heard in Committee Speakers Supervisor Yee. Harvey Row, Budget Analyst. Supervisor Ammiano, Mathew
Hymel, Mayor's Office; Id Harrington. Controller; Supervisor Bicrman Department representatives Steve Nelson. Administrative
Services, 1 d I ee. Director. Purchasing. John Marks. Convention Facilities Management, Naomi Nishioka, Acting Director, (lections.
Deborah Alvere/, Director, Department of Children, Youth & Families. Moniquc M I UTice. Ann Mane Conroy, Director.
Treasure Island, Francesca Vietor, Director, Department of Environment. Gloria Young. Clerk of the Hoard. Ginny Vida, Director,
Ethics Commission; Louise Renne.Cuy Attorney. Susan I eal, treasurer. Richard Sullivan, fax Collector. lommic Whitlow, Assistant
Assessor; Gerald Green, Director of Planning. Robert Fcldman. Hoard ol Appeals. Joe Grubb. Executive Director. Rent Arbitration
Board, Kate Favetti. [Executive Officer, Civil Ser\ ice Commission; Andrea Gourdine. Director. Human Resources. Claire Murphy,
General Manager. Retirement System, Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer, Juvenile Probation. Marsha
Bell, Librarian, law 1 ibrary , David Fneders, Commissioner of Agriculture Weights & Measures, Dr Boyd Stevens. Medical Examiner.
Carl Friedman, Director. Animal Care and Control; Ricardo Hernandez. Public Administrator Public Guardian. Terence Hallinan.
District Attorney. Jeff Brown, Public Defender; Michael Hennessey, Sheriff. Armando Cervantes. Chief Probation Officer, Adult
Probation. Robert Dcmmons. Chief, Fire Department, Ernie Pnndel. Budget Analyst office. Ken Bruce. Budget Analyst office. Fred
Lau, Chief, Police Department. Public: Larry Latimorc. POWER. Jake McCulder Continued to June 16. 1999
6/16/99, CONTINUED Heard in Committee Speakers Harvey Rose. Budget Analyst. Robert Jenkins, Director, Stcinhart Aquanum,
Academy of Sciences; Supervisor Yee; Ken Bruce. Budget Analyst's office. Rich Ncvvirlh. Director. Art Commission. Beth Murray.
Managing Director. War Memorial. Steve Dykes. Director of Administrations. Fine Arts Museum. Dcde Wilsey. President Fine Arts
Commission, Emily Sano. Director, Asian Art Museum, Supervisor Bierman, Susan Hildrcth, Deputy City 1 ibranan. Public Library.
Joel Robinson. Acting General Manager. Recreation and Park. Mark Carlson, Deputy Director. Public Works. Frank Chiu. Director,
Department of Building Inspection. John Martin. Director. Airport, Doug Wong. Executive Director. Port. Stuart Sunshine. Director,
Parking and Traffic Department, Julia Dawson. Finance, DPT, Julia Fncdlander, Acting Director Telecommunications & Information
Services, Mike Martin, Acting Director, Emergency Communications Department. Andy Moran, General Manager. Public Utilities
Commission; Michael Bums, General Manager, Municipal Railway. Jim Morales. Director. Redevelopment Agency. Rudy Alvercz.
Finance Director, Unified School District Public: Janan New, Executive Director S F Apartment Association. Betsy Thager. Carol
Kocivar., PTA, Leah Shahum; Mams Phillips; Brad. Matt Brown. St Peters Housing. Jung Kwok Ching. Mr Guo. Chinese Progressive
Association, Shuang Kuang, Jin Chi Zhso Continued to June 17, 1999.
6/17/99, CONTINUED Heard in Committee Speakers Harvey Rose. Budget Analyst. Dr Mitchell Katz, Director. Department of
Public Health; Supervisor Yee; Supervisor Ammiano. Ed Harrington, Controller. David Ishida. Executive Director. Commission on the
Aging; Supervisor Bierman; Marivic Bamba, Executive Director. Human Rights Commission. Soma Melara. Executive Director.
Commission on Status of Women, Ken Bruce, Budget Analyst's Office; Will Lightboumc, Executive Director. Department of Human
Services; Mathew Hymel, Mayors Office. Public; Gilbert Cnsswell Continued to June 19. 1999
City and County of San Francisco 2 Printed at 11:52 4\1 on ' 1 vV
Finance and Labor Committee Meeting Minutes June 24, 1999
6/19/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Joe Lacey; Bernie Rush, North of Market Senior Center; Tom
Phillips; Harry Goldfinger, Golden Gate Senior Services; Dorinda Ottey, CASE; Jim Elick, Coalition for Aging; Nick Lederer, Golden
Gate Senior Services; Arthur Jackson; Richard Oow, Coalition on Homelessness (COH); Rebecca Graff, COH; Sarah Short, COH;
Rosemary Dady, COH; Robert Haaland, COH; Miguel Wooding, COH; Judy Appel, Staff Attorney, COH; Mara Raider, COH; Shannan
Keyton, Attorney COH; Mary Kate Connors, Police Crisis Intervention Program. Darren Lewis, COH; Matt Brown, St. Peters Housing;
Ron Penz, Treatment on Demand Council; Jason Albertson; Jennifer Fnedenbach, COH; Rebecca Vilkersen, CURE, COH; Dorothy
Norman; Carla Amader, La Raza Centra; Mark Stanford, Local 535; Valorie Villela; Victor Santis, 30th Street Senior Services; Frances
Bums; David Drabblo, Paramedic, Fire Department, John Frank; Dale Butler; Lonnie Ruth Slunsky; Jim Keck; Larry Bradshaw; Dennis
Chase, Names Project; Yvonne Kirols, Citizens In Action For Personal Assistance; Mitch Jeserich, Independent Living Center; J.
Murray Fox, Legion of Honor Museum; Ernestine Weiss; Kathy Wolfe, Richard Rothman; Bob Planthold; Mary Ruth Gross; Jonna
Ramey, St. Mary's Park Improvement Club; Marybeth Wallace, Coleman Advocates; Mary Harris; Garrett Jenkins, North of Market
Planning Coalition; Laveme Hawkins; Coleman Advocates; Tom Nolan, Executive Director Project Open Hand; Carolyn Galbreat,
Randall Museum; Karen Crommie, Friends of City Planning; Romona Albright, Friends of City Planning; Gilda Serrano, Parent
Advocates; Richard Hanlin; Joan Pierson, Parent Advocate; Lanora Hamilton, Aaron Peslin, Gerry Crowley, Telegraph Hill Dwellers;
Jamie Motley, Walenberg High School; R. Jamal, Youth Making a Change; Taj James, Coleman Advocates for Children; Herbert Aliga;
Shireen Lee; Dr Christina Ma, Pediatrician, UCSF, Marie Ciepiela, OMI/Excelsior Beacon Center; Naz Johnson, Balboa High School;
Dillion Scott, Balboa High School; Fred Hobson, S.F. Tomorrow; Emanuel Smith; Marcia Forrilla, Health Nurse, Balboa High School;
Ann Anderson, Council of Neighborhood Libnaries, Vera Haile; Susan Mara; Scott Elsishans, Shanti Project; Duane Poe, Black
Coalition on AIDS; Female. La Raza; Female, Health Services for the Disabled; Margaret Jereme, Association for Education of
Children; Female, Family Childcare Provider, Western Addition; Judion Baker, South of Market Childcare; Maureen Carew; Amy
Stukills, teacher. South Of Market Center; Female, Health Services, Children with Disabilities; David McGuire; Bill Sorro; Tessie
Topal, Jewish Family Children Services; Camilla Ng; Winnie Yu, Darrell Poe, Native American AIDS Project; Michael Sanders; Mark
Foreman; John Garcia, Perasha Zond, Nurse, Native American AIDS Project, Martin Wakatu, Director, Native American AIDS Project;
Mabel Seto, Childcare provider; Jamie Huang, Childcare worker; Merry Fowler, Moscone Park Playground; Sue Chang, Director,
Moscone Park Playground; Nancy Ho; Amy Yam; Wai Yee; Qum Meika; Lisa Chan; Carol Steiman, Library Commissioner; Barbara
Berman, Friends of Library; Vas Prabhu, Director of Education, De Young Museum, Mary Pat Cress, Cheryl Bancroft, Autumn Payne;
Marvin Melchor Bustamonte, Public Health, San Francisco General Hospital (SFGH); Neil Gendel; Mana Luz Torres; Tracey Faulkner;
Nora Roman, nurse, SFGH; Mary Brown; Adbdalla Megahed, Mission Rock Shelter; Janie Hanagan; Jim Hartman, De Young Museum;
Joe Wilson, Coleman Advocates, Stan Kean; Reuben Goodman; Bruce, American Institute of Architects; Pauline Lo; M. Ho. Family
Network, Mrs. Zhu; Ma Jin; Amozr Lam; Mrs. Wong; Mrs. Lee; Ma Ho; Celia Siason; Emily Sauto; Carmen Maldonado; Amy Dawson,
Director, Randall Museum; Jaho Oscherwhz, Local 790; Ins Biblowitz, RN; Elizabeth Kirchner; Ashbury Neighborhood Council; Linda
Joseph, Local 535; lima Penate, Childcare Provider; Michele Lundy, S.F Family Childcare; Michael Lyon, SFGH; Walker Langston
Dukes, SFGH; Geraldo Ramos, Circle of Care; Norman Telson, Executive Director, Filipino-American Council; Fern Ebeling, RN;
Steve Currier, Excelsior Youth Center; Carolyn Washington, Bayview Sr. Center; Steve Bingham, National Coalition for Youth; Leslie
Ramos, Balboa High School, Rebecca Evans, Commission on the Environment; Anthony Bafondess, We The People. Continued to
June 22, 1999.
6/22/99, CONTINUED. Heard in Committee. Speakers: Supervisor Yee; Harvey Rose, Budget Analyst; Supervisor Ammiano; Mathew
Hymel, Mayor's Office, Ed Harrington, Controller; Supervisor Bierman. Department representatives: Steve Nelson, Administrative
Services; Louise Renne, City Attorney; Susan Leal, Treasurer; Doris Ward, Assessor; Gerald Green, Director of Planning; Joe Grubb,
Executive Director, Rent Arbitration Board; Andrea Gourdine, Director, Human Resources; Claire Murphy, General Manager,
Retirement System; Alan Carlson, Trial Courts; Jessie Williams, Chief Probation Officer; David Fneders, Commissioner of
Agriculture/Weights & Measures; Herbert Hawley, Administrator, Medical Examiner's Office; Carl Friedman, Director, Animal Care
and Control; Ricardo Hernandez, Public Administrator/Public Guardian, Terence Hallinan, District Attorney; Jeff Brown, Public
Defender, Michael Hennessey, Sheriff; Fred Brousseau, Budget Analyst's office; Lee Sampson, Business Manager, Adult Probation;
Robert Demmons, Chief, Fire Department; Ernie Prindel, Budget Analyst office; Ken Bruce, Budget Analyst office, Debra Ward,
Financial Officer, Fire Department, Fred Lau, Chief, Police Department. Public: Larry Latimore, POWER, Jake McCulder. The
Assessor and City Planning Department was continued to June 24, 1999. The meeting was continued to June 23, 1999.
6/22/99, CONTINUED. Heard in Committee: Speakers: Supervisors Yee; Bierman; Ammiano; Rebecca Villarson, Jennifer
Friedenbach, Coalition on Homelessness (COH); Margaret Brodkin, Coleman Advocates; Stephen Bingham, National Center for Youth
Law; Lana Berger, POWER; Karen Sherr, Rand Quinn, N. California Immigrant Rights Coalition; Roger Bazeleg, PTA; Sandra
Vanderpool, Guerrero House; David Graves, Kids-In-Parks; Deane Shokes, Stonestown YMCA; Alexander Vaughan, Mission YM< \.
Art Tapia, Coleman Advocates; Sue Eisenberg, Self-Help for the Elderly; Gerald de Ryan; Deetje Boler; Zachary Wald, BayPeds; Betsy
Thaggard, WalkSF; Leah Shaholm, SF Bicycle Coalition (SFBC); Ken Kelton, Pedsafc, Kathirene Soriano, Homeless Prenatal Program;
James Momson, WalkSF, Margaret Robbins, Manny Sunshine, Urban Elders Program; Emily Drennen, SFBC, Joshua Switsky,
WalkSF; Irv Katuna, SF State University, President Gamma, Robert Nash, POWER; Jon Winston; Martina Gillis; Darren Lewis, COH;
Barbara Hughes, POWER; "Marlene," POWER; "Garth," POWER; Ed Ealing, POWER; Roxannc Trade, POWER; Julia Greenfield.
Lawyers Committee for Civil Rights, Abdalla Megahed, Sue Cauthen, Sunshine Ordinance Task Force. Dav id 1'ilpel. Rescue MUNI;
Pauline Peel, Seniors Disability Advisory Council, Martha Bndegum, COH, John Bergman, POWER, Emma Hams, POWER, Michelle
Michelson, Legal Aid Society; Ed Willard, POWER; "Will B. Paidwell" (pseudonym), POWER. Continued to June 23, 1999
6/23/99, CONTINUED Heard in Committee Speakers: Harvey Rose, Budget Analyst. Enrique Navas. San Francisco Unified School
District (SFUSD); Tim Tronson, SFUSD; Robert Jenkins, Director, Steinhart Aquanum, Academy of Seances. Supen isor Yee. Ken
Bruce, Budget Analyst's office, Rich Newirth, Director, Art Commission, Supervisor Bierman. Beth Murray, Managing Director. W.ir
Memorial; Steve Dykes, Director of Administrations, Fine Arts Museum; Dcde Wilsey, President, Fine Ans Commission; Emily Sano,
Director, Asian Art Museum, Supervisor Bierman; Susan llildreth, Deputy City I ihranan. Public 1 ihrary . Supervisor Ammiano;
Mathew Hymel, Mayor's office; Debra Newman, Budget Analyst's office, Joel Robinson. Acting General Manager. Recreation and Park.
Mark Pnmcau, Director, Public Works, Frank Chill, Director, Department of Building Inspection, M.ircus PeilO, Deput) Director,
Airport; Doug Wong, Executive Director, Port, Stuart Sunshine. Director. Parking and Traffic Department; Julia Friedlamler. Acting
Director Telecommunications & Information Services, Mike Martin, \ctmg Director. Emergency Communications Department; Vulv
Moran, General Manager, Public Utilities Commission; Michael Bums, General Manager. Municipal Kailw js ( onlinued to June 2-t.
1999.
City and County of San Francisco 3 Printed at 1 1:S2 AM on 7/1/99
Finance and Labor Committee Metting MinuUt June 24, lt'/<)
Heard in Committee. Speakers: Harvey Rose, Budget Analyst, Supervisor Yee; Gerald Green, Director oj
Planning; Raymond de Portillo, Chair, Commission on Aging, David Ishida, Executive Director, Commission
on Aging; Supervisor Ammiano; Marivic Bamba, Executive Director, Human Rights Commission, Will
Lightbourne, Executive Director, Department of Human Services. Monique Zmuda, Department oj I'uhlu
Health; Supervisor Bierman; Mathew Hymel. Mayor's office; Supervisor Yee, Ken Bruce. Budget Analyst's
office; Fred Lau, Chief, Police Department Amended fsee Budget Analyst Report showing recommendations
of Finance and Labor Committee in file, also see ( ontroller's report outlining budget changes In department
program and object; appropriation reserves detail, and Committee's budget addbacks) To Board on July 12.
1999.
AMENDED.
Annual Budget of the City and County of San Francisco for Fiscal Year 1999-2000.
(Charter Section 9.100 provides the Board shall not adopt the Budget earlier than July 15, 1999, nor later than
August 1, 1999.)
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991208 [Designating the San Francisco Examiner as Official Newspaper for fiscal \car 1999-2000 (I J pc I
Advertising, must publish at least 5 consecutive days a week)]
Resolution designating the San Francisco Examiner to be official newspaper of the City and Count)' of San
Francisco for specified categories of advertising, commencing July 1, 1999. (Purchaser)
6/16/W. ku I ivi D (VND ASSIGNED to Finance and Labor Committee
Heard in Committee Speakers Harvey Rose, Budget Analyst, Supervisor Yee. Mike Hard. Purchasing
Department. To Board June 28, 1999
RECOMMENDED AS COMMITTEE REPORT by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991209 (Designating the San Francisco Independent as Official Newspaper for fiscal \ear 1999-2000 (Type 2
Advertising, must publish at least 3 nonconsecutivc da\s a week)|
Resolution designating the San Francisco Independent to be official newspaper of the City and County of San
Francisco for specified categories of advertising, commencing July 1. 1999. (Purchaser)
6/16/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee Speakers Harvey Rose, Budget Analyst; Supervisor Yee. Mike Hard Purchasing
Department. To Board June 28. 1999.
RECOMMENDED AS COMMITTEE REPORT by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco 4 Printed at 1 1:52 AM on 7, / VQ
Finance and Labor Committee
Meeting Minutes
June 24, 1999
991210 [Outreach Newspapers for fiscal year 1999-2000]
Resolution designating the Bay View Inc., the Sun Reporter and the Small Business Exchange to be outreach
newspapers of the City and County of San Francisco for the African- American community; designating the
China Press, the Sing-Tao Daily News, and the World Journal to be outreach newspapers of the City and
County of San Francisco for the Chinese community; designating the El Latino and the El Reporter (The
Reporter) to be outreach newspapers of the City and County of San Francisco for the Hispanic Community;
designating the Philippine Guardian as the outreach newspaper of the City and County of San Francisco for the
Philippine community; designating the Korean Times as the outreach newspaper of the City and County of
San Francisco for the Korean community; designating the Hokubei Mainuchi as the outreach newspaper of the
City and County of San Francisco for the Japanese community; designating the San Francisco Bay Times and
the Bay Area Reporter as the outreach newspapers for the Lesbian/Gay/Bisexual community, commencing on
July 1, 1999. (Purchaser)
6/16/99, RECEIVED AND ASSIGNED to Finance and Labor Committee.
Heard in Committee. Speakers: Harvey Rose. Budget Analyst; Supervisor Yee. Mike Ward, Purchasing
Department. Amended to allow purchaser to execute contracts with only those newspapers who comply with
the City's equal benefits requirements ; new title. To Board as a Committee Report on June 28, 1999.
AMENDED.
Resolution designating the Bay View Inc., the Sun Reporter and the Small Business Exchange to be outreach
newspapers of the City and County of San Francisco for the African- American community; designating the
China Press, the Sing-Tao Daily News, and the World Journal to be outreach newspapers of the City and
County of San Francisco for the Chinese community; designating the El Latino and the El Reporter (The
Reporter) to be outreach newspapers of the City and County of San Francisco for the Hispanic Community;
designating the Philippine Guardian as the outreach newspaper of the City and County of San Francisco for the
Philippine community; designating the Korean Times as the outreach newspaper of the City and County of
San Francisco for the Korean community; designating the Hokubei Mainuchi as the outreach newspaper of the
City and County of San Francisco for the Japanese community; designating the San Francisco Bay Times and
the Bay Area Reporter as the outreach newspapers for the Lesbian/Gay/Bisexual community, commencing on
July 1, 1999; authorizing the Purchaser to execute contracts with only those outreach newspapers that fully
comply with all City contracting requirements, including equal benefits requirements. (Purchaser)
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
991052 [Annual Appropriation Ordinance FY 1999-2000]
Mayor
Annual Appropriation Ordinance appropriating all estimated receipts and all estimated expenditures for the
City and County of San Francisco for fiscal year ending June 30, 2000. (Controller)
(Fiscal impact; Companion measure to Files)
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Bierman; Supervisor Ammiano;
Supervisor Yee. Amended to reflect the Finance and Labor Committee's recommendations (see file for
details); to Board meeting of July 12, 1999.
AMENDED.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
City and County of San Francisco
Primed at 11:52 AM on ' I VV
Finance and Labor Committee Meeting Minutes June 24, 1999
991086 |Annual Salary Ordinance, FY 1999-2000]
Mayor
Annual Salary Ordinance enumerating positions in the annual budget and appropriation ordinance lor the
fiscal year ending June 30, 2000, continuing, creating or establishing these positions; enumerating and
including therein all positions created by Charter or State law for which compensations are paid from City and
County funds and appropriated in the annual appropriation ordinance; authorizing appointments or
continuation of appointments thereto; specifying and fixing the compensations and work schedules thereof.
and authorizing appointments to temporary positions and fixing compensations therefor.
(Fiscal impact; Companion measure to Files 991065, 991052.)
6/1/99, RECEIVED AND ASSIGNED to Finance and Labor Committee
Heard in Committee. Speakers: Harvey Rose, Budget Analyst, Supervisor Bierman, Supervisor Ammumo;
Supervisor Yee. Amended to reflect the Finance and Labor Committee's recommendations (sec //,■'.
details); to Board meeting of July 12. 1999.
AMENDED.
RECOMMENDED AS AMENDED by the following vote:
Ayes: 3 - Yee, Bierman, Ammiano
ADJOURNMENT
The meeting adjourned at 3:59 p. m
City and County of San Francisco 6 Primed at 11:52 AM on VI V9
f
3
CITY AND COUNTY
Public Library, Gov't Information Ctr.. 5 th Fir.
Attn: Susan Horn, Dept. 41
2 OF SAN FRANCISCO
^BOARD OF SUPERVISORS
BUDGET ANALYST
1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642
FAX (415) 252-0461
June 22, 1999
TO: 4 Finance and Labor Committee
FROM: .,_ Budget Analyst
SUBJECT: June 24, 1999 Finance and Labor Committee Meeting
\
Items 2 and 3 - Files 99-1208 and 99-1209
DOCUMENTS DEPT.
JUN 2 h 1999
SAN FRANCISCO
PUBLIC LIBRARY
Department:
Item:
Description:
Purchasing Department
File 99-1208 : Resolution designating an as yet to be
determined newspaper to be the official newspaper of the
City for specified categories of advertising ( Type 1) .
commencing July 1, 1999.
File 99-1209 : Resolution designating the San Francisco
Independent to be the official newspaper of the City for
specified categories of official advertising ( Type 2) ,
commencing July 1, 1999.
The City's official advertising is divided into two categories:
TVpe 1 - Advertisements for Two of More Consecutive Davs
Official advertising which must be published on two or more
consecutive days, and all official advertising which is
required to be published in accordance with Section 2.103 of
the Charter for special meetings of the Board of Supervisors
and its standing or special committees. The Official
Newspaper must publish at least 5 days a week for Type 1
Advertising.
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
Type 2 - Advertisements for Single or Non-consecutive Days
Official advertising, which must be published one time, other
than one-time advertising related to special meetings for the
Board of Supervisors and its standing and/or special
committees, or more than one time but not more than three
times per week for a specified number of weeks. The Official
Newspaper must publish at least 3 days a week for Type 2
Advertising.
The City currently contracts with the San Francisco
Examiner for Type 1 official advertising and with the San
Francisco Independent for Type 2 official advertising. The
contracts are due to expire June 30, 1999.
Proposition J, which was approved by the San Francisco
electorate in November of 1994, in part, changed the criteria
by which the City selects a newspaper to publish the City's
official advertising. The Purchasing Department advises
that, under Proposition J, pursuant to Section 2.81 of the
Administrative Code, several criteria are considered and
used to evaluate bids, on the basis of a point system. Bidders
are required to submit typeset samples and other
documentation for evaluation purposes. The criteria used for
evaluation of bids under Section 2.81 includes (1) the cost of
advertising in each newspaper (the newspaper which bids the
lowest price for advertising receives additional points), (2)
the level of circulation of each newspaper (the newspaper
with the largest circulation receives additional points), (3)
the cost of the newspaper (any newspaper with a majority of
circulation that is free of charge to the general public
receives additional points), and (4) the ownership of the
newspaper (newspapers which are owned by local, minority
or women-owned firms receive additional points).
File 99-1208: For FY 1999-2000. the Purchasing
Department estimates that the total costs for Type 1 official
advertising in the San Francisco Examiner under a contract
extension will be $32,780. or $13,280 more than the
estimated $19,500 expended on Type 1 advertising in FY"
1998-1999. According to the Purchasing Department, in
response to its Invitation for Bids, the Department did not
receive any bids for Type 1 official advertising. Because no
bids were received, the Purchasing Department is not
making a recommendation regarding the award of the City's
BOARD OF SUPERVISORS
BUDGETANALYST
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
Type 1 official advertising for FY 1999-2000. Instead, the
Purchasing Department is presenting information to the
Board of Supervisors about the San Francisco Examiner and
San Francisco Chronicle newspapers. According to the
Purchasing Department, the San Francisco Examiner and
San Francisco Chronicle have historically been the only
responsive bidders for Type 1 advertising, and appear to be
the only newspapers that meet the Administrative Code's
requirements for Type 1 advertising.
Because no bids were received for Type 1 advertising, the
Purchasing Department has presented five options to the
City for FY 1999-2000 for the Board of Supervisors
consideration as follows: (1) the Board of Supervisors could
choose not to have an Official Newspaper for Type 1
advertising, (2) the Board of Supervisors could direct
Purchasing to rebid Type 1 using the same bid requirements,
(3) the Board of Supervisors could direct Purchasing to rebid
and relax some of the requirements of the Administrative
Code, (4) the Board of Supervisors could designate the
Examiner or Chronicle as the Official Newspaper for Type 1,
or (5) the Board of Supervisors could designate the Examiner
as the Official Newspaper for Type 1 advertising by
extending the current contract with the Examiner (see
Attachment 1, pages 2-3 of the letter from the Purchasing
Department, dated June 3, 1999 for a more detailed
description of the options).
Regarding the five options, the Director of Purchasing stated
that with respect to Option No. 5 which, if adopted by the
Board of Supervisors, would designate the Examiner as the
Official Newspaper for Type 1 advertising, "It appears this
option is the most practical, timely, and economical method
to meet the City's needs for Type 1, consecutive day
advertising."
The Purchasing Department advises that the cost per line of
typeset in FY 1999-2000 would be $2.24, or $0.20 more than
the $2.04 charged in FY 1998-1999, representing a 9.8
percent cost increase. Attachment 1, page 8, provided by the
Purchasing Department, contains bid data and point
calculation information for the San Francisco Examiner,
using last year's bid data, and assuming the Examiner's
contract is extended.
BOARD OF SUPERVISORS
BUDGET ANALYST
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
File 99-1209: For FY 1999-2000, the Purchasing
Department estimates that total costs for Type 2 official
advertising in the San Francisco Independent will total
$783,400, or $53,700 less than the estimated $837,100
expended for Type 2 advertising in FY 1998-1999. According
to the Purchasing Department, in response to its Invitation
for Bids, the Department received one bid for Type 2 official
advertising. The San Francisco Independent proposed to
extend its existing contract with the City for Type 2
advertising. The Purchasing Department is recommending
that the San Francisco Independent be awarded the City's
Type 2 official advertising for FY' 1999-2000. The Purchasing
Department advises that the cost per line of typeset in FY"
1999-2000 would be $4.30. or $0.26 less than the $4.56
charge in FY 1998-1999, a 5.7 percent decrease. Attachment
1. page 8, provided by the Purchasing Department contains
the bid data and point calculation information for the San
Francisco Independent .
Comments: 1. The Purchasing Department states that the City Attorney
has advised that the Board of Supervisors need not accept
the Purchasing Department's recommendations to award
contracts to newspapers for Official Advertising and may
designate any newspaper which is qualified under the
Charter and the Administrative Code.
2. As explained on Attachment 1. page 4, the Purchasing
Department estimated the average of the total lines of official
advertising placed by the City during a four-year period. FY'
1994-1995 through FY' 1997-1998, and multiplied by the
newspaper's line price, to estimate the cost of Type 1 and
Type 2 official advertising for FY 1999-2000. This
calculation is detailed for Type 2 advertising based on the bid
received in Attachment 1. page 8. The Purchasing
Department has not provided a similar calculation for Type 1
advertising, because no bids were received.
3. According to the Purchasing Department, pursuant to
Section 2.81-2(a) of the Administrative Code, 90 percent of
the cost of official advertising will be paid to the Official
Newspapers and 10 percent will be withheld and placed into
a revenue fund to pay for outreach advertising which are
weekly advertisements placed in community-based
BOARD OF SUPERVISORS
BUDGET ANALYST
4
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
periodicals, targeting African American, Chinese, Latino, and
Lesbian, Gay, and Bisexual communities, designated by the
Board of Supervisors. In addition, any portion of the 10
percent set aside that is not expended in previous years will
be carried forward for future outreach advertising.
Recommendation: Approval of the proposed resolutions is a policy matter for
the Board of Supervisors.
BOARD OF SUPERVISORS
BUDGET ANALYST
5
/ / *—
- . Atta chment _ , .
City and County of San Francisco p age i Q f 9 Purchasing Department
Willie Lewis Brown, Jr.
Mayor
i'r0r- lr
Through:
From:
Subject:
Summary
June 3, 1999
~ C ?
JJjjy ^ -
Gloria Young
Clerk of the Board
*4
Edwin M. Lee
Director
Steve Nelson
Director of Administrative Services
Edwin M. Lee ^(L/
Director of Purchasing
Resolutions Designating Official Newspapers and Outreach Newspapers for FY 99-2000
In accordance with §2.81 of the Administrative Code, I am reporting to the Board the results of Purchasing's
request for bids for Official Advertising. Purchasing has prepared the enclosed resolutions for the two
categories of advertising.
This memo describes the process of evaluating bids for Official Advertising, the major issues encountered, and
the Board's options. A corresponding report on Outreach Advenising and recommendations follows the
report on Official Advertising.
A. Official Advertising
As required by the Admin. Code, Purchasing is recommending the San Francisco Independent as the
Official Newspaper for Type 2, nonconsecutive day advertising. Because no bids were received for Type
1, consecutive day advertising, Purchasing is not making a recommendation for Type 1. Instead.
PurchasHig is presenting information about the Chronicle and Examiner, which have historically been the
only responsive bidders for Type 1, and appear to be the only newspapers which meet the Admin. Code's
requirements for Type 1 advertising. Although the newspapers did not bid, the San Francisco Newspaper
Agency (SFNA), agent for the Examiner and Chronicle, has offered the City to extend the existing
contract with the Examiner. In this situation, the Board may designate either newspaper as the Official
Newspaper for Type 1, or may consider other options presented in the "Bid Summary, Type 1
Consecutive Day," on the next page. It appears that option 5 offers the most practical alternative.
Pursuant to the Admin. Code, Purchasing calculated the points for the Independent using its current bid.
For information purposes, we calculated points for the Examiner using last years contract extension rfot a
A summary of the calculation follows:
Typel:
Option to Extend
Examiner' s contract
Tvpe 2: current bid data
IndeDendent
Total Points
Ranking
Cost per line
Est Cost
Not applicable
Not applicable
$2.24
$32,780.00
36
1
$4.30
$783,400
The total estimated cost for Type 1 for the Examiner under a contract extension is $32,780.00. The
estimated cost for Type 2 for the Independent is $783,400. Ten percent of the total of Type 1 and 2
would be available for Outreach Advertising.
City Hall, Room 430 1 Dr. Carlton B. Goodlett Place Tel. (41 5) 554-S743 Fax (415) 554-6717 San Francisco CA 94102-4685
Home Page: www.ci.sf.ca.us/purchase/ Recycled paper E-mail: Purcr>asing<S>a.sf ca.us
6
Attachment 1
Page 2 ot y
Gloria Young
June 3, 1999
Page 2
Schedule
The current contracts for Official Advertising will expire June 30, 1999 and new Official Newspapers must be
designated prior to July 1,. To meet this June 30 deadline, please calendar these resolutions to allow time for
Committee meetings, Board approval, signature of the Mayor, and notification to City departments. Due to
the unusual situation for Type 1 advertising, more than one Committee meeting couid be necessary.
Definition of the Two Tvpes of Advertising
The City places two kinds of advertising, which have historically been designated Type 1 and Type 2. A
shorthand description of them is: type 1 is consecutive day advertising; and Type 2 is nonconsecutive day
advertising. For Type 1 advertising, the Official Newspaper must publish at least 5 days a week. For Type 2
advertising, the Official Newspaper must publish at least 3 days a week.
The formal definitions are as follows: Type 1 advertising is that which must be published on two or more
consecutive days or which must be published in accordance with §2.103 of the Charter. Type 2 advertising is
that which must be published one time other than by §2.103 of the Charter, and all other official advertising
required more than one time, but not more than three times a week.
Two sample ads, one for each type of advertising, appear in Exhibit A, "Samples of type 1 and Type 2
Advertising."
Bid Summary
Bidders were required to submit typeset samples and other documentation for the evaluation of points pursuant
to Admin. Code §2.81. No bids were received for Type 1 advertising and one bid was received for Type 2
advertising. Purchasing received an offer from the SFNA, agent for the Examiner and Chronicle, to provide
Type 1 advertising under a contract extension with the Examiner. The details of the offer are explained beiow
in options 4 and 5. Exhibit B is a detailed presentation of bid data (this year and last) showing how the points
were calculated. .
Type 1, Consecutive Day
Because no bids were received for Type 1 advertising, Purchasing is unable to make a recommendation pursuant to the
guidelines in §2.81. The following options are presented for the Board's consideration. It appears that Option 5 offers
the most practical, timely and economical solution.
Options:
1 . No Official Newspaper for Type 1 . The Board could choose not to have an Official Newspaper for Type 1
advertising. Purchasing does not recommend this option because of the City's need for Type 1 advertising for
scheduling special meetings of the Board, Committees, and certain consecutive day advertising such as bond
issuance's and special elections.
Attachment 1
Page 3 of 9
Gloria Young
June 3, 1999
Page 3
2. Rebid with the same bid requirements. The Board could direct Purchasing to rebid Type 1 using the same bid
requirements. However, the SFNA has said thai ihe newspapers chose not to bid on the current bid and would not
bid if there were a rebid. Purchasing contacted other potential bidders and found that only the Examiner and the
Chronicle meet the Admin. Code's requirements for circulation of 50,000 per week, consecutive day publication,
and printed in the City. Therefore, Purchasing does not recommend this option because it is almost certain no
responsive bids would be received.
3. Rebid and relax some of the requirements of the Admin. Code, such as weekly circulation of 50.000 per week,
consecutive day publication, or printed in City, so additional newspapers would meet the requirements. Because
these requirements are in Admin. Code §§2.80 and 2.81 and were passed by the voters, it would require voter
approval to relax these requirements. Purchasing does not recommend this option because of the complexity and
time requirements of obtaining voter approval.
4. Designate the Examiner or Chronicle as the Official Newspaper for Type 1 advertising, because they are the only
known newspapers that meet the Admin. Code's requirements for circulation of 50,000 per week, consecutive day
publication, and printed in the City. Although the newspapers did not bid, the SFNA. agent for the Examiner,
offered to extend the current contract at the rate of S2J24 per line. If the City does not extend the contract, and the
Board designated the Chronicle or Examiner as official newspaper for Type 1 Advertising, the newspaper would
not be subject to any of the City's terms and conditions required in the bidding process.
5. Designate the Examiner as the Official Newspaper for Type 1 advertising by extending the current contract. Under
this option, the SFNA offers to sign a one page contract extension, which would extend the contract for one year,
and incorporate the existing terms of the agreement
It appears this option is the most practical, timeiy, and economical method to meet the City's needs for Type 1,
consecutive day advertising.
Following are some of the advantages of the extension:
• If the contract is extended with the Examiner, the City will have a contract with the City's terms and
conditions.
• The Examiner has historically been designated the Official Newspaper for Type 1 advertising.
NOTE: the Board, last year, selected Option No. 5 to extend the Examiner's 1997 contract to cover FY 98-99.
Type 2, Nonconsecntive Day-
One bid was received for Type 2 advertising, from the Independent Pursuant to Admin. Code. Purchasing is
recommending the Independent as the Official Newspaper for Type 2. nonconsecutive day advertising.
Equal Benefits Ordinance
The San Francisco Independent and the San Francisco Newspaper Agency (SFNA) agent for the Examiner and
Chronicle comply with the Equal Benefits Ordinance.
Attachment 1
Page 4 or 9~~
Gloria Young
June 3, 1999
Page 4
Bid Evaluation before and after the FY 94-95 Contract
Up to and including FY 94-95, bidders which were responsive were evaluated on their bid price alone. Purchasing
recommended the lowest reliable and responsible bidder, and the Board either agreed with the recommendation,
requested the transaction to be rebid, or took other action.
In November 1994, Prop. J was passed by the voters, and for the FY 95-96 contract and beyond, bid price is only
one of several factors which are evaluated and weighted to determine the recommended paper. Also. Purchasing is
required to recommend the paper with the highest point total. The City Attorney has advised that the Board need
not accept Purchasing's recommendation and may designate any newspapers) meeting the Charter requirements.
How the Estimated Cost of the Contract was Calculated
To estimate how much the City would spend on advertising, Purchasing estimated the number of lines of
advertising and multiplied by the paper's line price.
To estimate the lines of advertising for FY 99-00, Purchasing used the average of the total lines of ads placed from
FY 94-95 through FY 97-98. For each paper, the number of lines was adjusted to compensate for the papers'
different methods of typesetting. (The same ad would require a different number of lines in the Independent that it
would in the Examiner.)
The Estimated Cost includes Official Advertising and Outreach Advertising
Pursuant to §2.81-2(a) of the Admin. Code, 90% of the cost of Official Advertising will be paid to the Official
Newspapers and 10% will be withheld and placed into a revenue fund to pay for Outreach Advertising. In
addition, any money which was withheld and not spent in previous years will be carried forward and available for
future Outreach Advertising.
Other Issues
1. On What Davs Department Should Advertise
Section 2.81-1 reads in part
"If the circulation of the official newspapers) varies by day or the cost of advertising varies by day,
the Purchaser shall direct all City departments to advertise in those editions of the newspar>er(s) with
the greatest circulation and the lowest advertising cost"
For type 1, FY 96-97 statistics showed a conflict between highest circulation and lowest cost The Examiner's
(and Chronicle's) circulation on Sunday are higher but the price is also higher. As a result Purchasing plans
to advise departments to advertise on Monday through Saturday.
For Type 2, the Independent's bid price is the same for hs Tuesday. Thursday and Saturday editions, but the
circulation varies. The Independent's audit report of its circulation shows no San Francisco home circulation
on Thursday. As a result Purchasing plans to direct departments to advertise on Tuesday (S.F. home circ.
198,850) and Saturday (128.977) and not on Thursday (0).
Attachment 1
Page 5 of 9
Gloria Young
June 3, 1999
Page 5
These are similar to the same recommendations made last year about low circulation on a specific dav.
If the Board would prefer Purchasing to give different direction to City departments, please advise.
2. Current and Historical Data on Bid Prices and Spendine
Purchasing has gathered information on bid prices and spending for Official Advertising from FY 94-
95 to the present The information is presented in Exhibit C, Type 2 Bid Prices, Sample Ad Prices,
and Spending, FY 94-95, FY 99-00". Following is a summary from the exhibit for the current FY and
the bid prices (and offers) received for FY 99-00.
FY 98-99 FY 99-00
Type 1 Cost per line: Examiner $2.04 with contract S2.24 with contract
extension extension
Type 2 Cost per line: Independent $4.56 $4.30
3. Approval of Official Newspapers' Workforce Data and Affirmative Action Plans (Chapter 12B1
The Human Rights Commission received and approved the Chapter 12B-related materials submitted
by the Independent
B. Outreach Advertising
Purchasing is recommending to the Board that the current contract for Outreach Advertising be extended
for an additional twelve (12) months through June 30. 2000.
The basis for this recommendation is as follows:
• Comply with the board's effort to afford additional minority communities participation in
the City's outreach advertising contract.
• Allow outreach newspapers an additional contract term in order to fully participate in the contract
Several newspapers spent six months to comply with City's Contracting Requirements (12B, etc.) and
their participation was extensively delayed.
• Several outreach newspapers are currently in the final stages for approval for contracting
requirements.
With this extension of the current contract, the board can achieve its effort to maximize communitv based
newspaper participat: en in the outreach advertising contract
Conclusion
Purchasing looks forward to reviewing this m a tte r with the Committee. If we can provide anv additional
information before the Committee meeting, please advise.
Enclosures are listed on next page.
10
Attachment 1
Page 6 of 9
Enclosures:
Resolution designating a "to be determined" newspaper as the Official Newspaper for Type 1,
consecutive day advertising.
Resolution designating the S.F. Independent as the Official Newspaper for Type 2,
nonconsecutive day advertising.
Resolution extending the outreach advertising contract for an additional twelve (12) month
period through June 30, 2000.
A. Samples of Type 1 and Type 2 Advertising
B. Bid Data and Point Calculation
C. Type 2 Bid Prices, Sample Ad Prices, and Spending, FY 94-95 through FY 98-99
11
Attachment 1
Page 7 of 9
Exhibit A
Samples of Tvae 1 and Tvroe 2 Advertisinc
Tvoe 1
This category includes 3oard of Supervisors' Notices of Specia.1
Meetings. The following example is notice of a Special Meetinc
of the Board.
■unci of stoat utrnsa
Kwoor 5u>>c»voor>s
TluKlt. Uarm 11 OH - L-O w«
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OTltiUlL VI IT.
Tvoe 2
This category includes: Notices of 3oard and Committee Meetincs
Summary of Board Actions; Invitations for Proposals; Invitations
for Bids; Citations.* The following example is a Notice of a
Regular Meeting of the 3udget Committee.
NOTICE OF RECULAR UEFTINC
BUOCET COUUTTTEE
SJ. BOARD OF SUPERVISORS
noou 73. cmr haix
weonesoat. HMKN t. rsw . isa
rx.
SUUMART:
Fit. 717-aa? (Sapplaraantal
Budgat/Sanior Eicart Pio-jfiraj
Haanng to consdar tla tain of r«
Board or" Sup*r*iaor"a raquaat lar a
£790.003 »cc«"«na aoproprlaaan fc*
tbt S«nKx Eicon Proorja.
(Suparriaari Hwr\, Aflotot. Barman)
(Condnuad ton ;r2V9a)
Prim-gyri i. rfWa«T*dFwi.Pcn
d Son Francraoa] Haonna raovaadrtf
ralaosa of wind knex. Part, to r»
amount of 11 (0.000. lot trial
araanaarairj jnd OMgn ol raaxfiicasom
to kamats i] W 14 t arxsraaaodata
drjuska azadl un riiraa ral cjtu (Porft
F3» 177-«d.«, [HaW Haoaiata
Aaraa rn anl. Fany Taraatuf Up Gndal,
Rsdoton juVrjtang It* Part to iVM
n* SUM rat Caruorrda rlaradxa lar
dairss Art»r*c. koto work don* or
onuotd to d* dan* 07 >o*na or
con»X3orj ararkjnrj on Or* f any
7ann*-.af UpOjdo Plojae. at PW 1/2.
(Supwaor IU<ri)
gl 1SH7-t? LUtHr.r.i FundX
RadaaatopratBi Aaaoqri Muring,
racararing iduu al mnd knit.
B»don*ocm4rt A5.ncT. in is* mtH
ol Jia.OOO lor ru> Hunan Print
S^crard. (Roooioiecmont Arjoncj)
FU IKHU-t poxi * Suptnatn
Ctopjrtojont BuriaK. *SM*| (burn]
t> ooroMv t» IS4-9* Bjojat iwpmi
ol tM OooaitoMnt ol bo Board ol
S^to' OUl . [Sjo«t»<i Alo<c(
R» yt.«A^ (UOU. Torooarxy
Raroaaan ol Orf Hjq R«du»an
Ajffiourig rto OactiDr of Prcporff to
•aur Into J Uoaonndoto ol
UnaWianatna ~n fn w» IWoarul
Board ol Tnrst**!, lar }!• loraparjqr
raiocsiai ol ITM ULrra. r« Boa^d ol
Su9*miari. to« Lj« Iio»j#t. and
pouibln too Cut Aaom«r. i* .-- Wot
ll ni origl Vanram Buienc, =..
Eaato Ow(J
R. fa.<M-l Itni ol Raal Prop.7
at U3 Falvjto S<.| RauMuaon
a/ftannr^ a «ju ol raal propprfr al
Oj FalaoBi Svaol lor tta Inroa-
raroczaan of S)a CM Cxao. Court-
ratolad AcaMnasxaoao Orwisora. and
othar Gtr oaoaranona. (Root giuta
Da«
F»>'i' <U-a |laau ol Baal Prop. 7
at m Soranaon Si| Rnnvban
irtVrLmq a toaso al roal praparn/ 01
ITS Soavwnm SaooX. aorraoaniT known
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ft* tawapararf rakoeadon al Co
daporajaona CDfitoad/ tt Grr Hafl.
(Rool Eioaa Oct]
F»a 47-0-1 fPorianc ftova Qonrja .
Sawstaxai Corxraf RuahrOan
racoratoondrKj tat Caa Son FronoiGD
Board ol Svpararjcrs oppro<n> SO"
parkira] n«B at r» Fitn and Uuion
Garaj*. fC«cX. al Parkraj and I ra.1<
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Forlodora and Soizura aaonatt tor
i wua k Lk k t atoo BtoJl and karoaiaalon
at Caa Psica Oaoomart and OzSia
Anan^l COc ksr IOO-M (Vtdudaa
BoppJaxt. sanacao alod>«r dapo^aora
and 00U awpaj aaanri ax ta Poka
Oaoarooarat and aotarioi and
■LOndatorr hn«* bonoars br fa
Obairt Aanmafj Qatafa ICorarolarl
Fid 101 ■arm lAppnotadon. Darx ol
rubac Works! Cvdaaonca kavaaaaanraj
Sl.rrx.ooa Oapartoaant ol PvbGc
Wodo. poaa Eonsojeraka Salary Bond
Fund lotoroxt a a ntoi ui tor ckp —
BBproroRjontx to various Fa a S&aanx.
(Cauotlarl RO fCZZS
F-i IQI-o? AQ 4. piasOTWFuiei.Fta
Dwoortaanr] Hoainr; raoraaknj rriaaM
ol l a tar a d lunda. Paa Oaparesant.
1*92 Prop C Fv anprwrwuart Bond
Procrara. * IM araotfU ol DOa BOO.
lar dvoort. cansuueaon a^ncra Mn^
conatrvedoa lor Tarloui Fka
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Oaoa-jaoid fCoranuac koa 13
Fa. IQ1.a3.jj. [Apptooiljdon.
OapornantolPUbacWtataJ Caonanca
arxaacrtaanf dJaotAX o^d rwacraanrj
iC.700 000. Daoorraaaro al Puobc
Worta. koa Samnrdaja Caan *i.
Piojac to ato» ffaa oonaaucaon cd ria
Ranao Pu-p Sudor, and aau OCX*
anpio«a«««a to r«a Soutwa« War*
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F?a IQI-n-aO. lAppiopnaaon.
Oaaxarmaant ol AonaaAaa) Ordaianca
anaaprtaano t-~ "71 Caporaaard ol
Aonoutaro. la ii ja aaa d Stata Cosoana
Tot laiar aa * kr aqadpraara ponTuaa,
aaraacaa ol ataar daparlaana and
Vantlar to oa jp prot a Latad Ganaral
Fund Raaarra ka lacd raor inj-aA.
(Caruroaar) RO r-323
F3-tm-fy*1. (AfporTtoaon. Board ol
Supanaaara] &«Vunca oppraprfoanrj
£223.000. Board ol Suparnaan. to
odow iwnu profaaaional aajai paj
csnric aon tl< Bradoal aaottiI
(Zarr>aasa Boaaal onarrrt) b lacal
roar aaaMt; andad kora Cananl Fond
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raoarana Board raaarros (1107 J07).
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aM»*|
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prcjoraot taadanwaai qlSdantaalpr
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and raaending UiaOOT tea 1 cetot
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ao laaadlad »TJ»aaa taauat aola-.
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aarracad onoar Tata ■ al ba Kjaorvd
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r»o»a rVoojoa davTtoaon. kadaac
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af kvaaa 7 K kaMl ad ba paid 07
r I 1| Daiat Lu »»d BVask Oam
k^di. [SvoaTn u j i SKaWr. Akoaq
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Attachment 1
Page 8 of 9
Bid Data and Point Calculation
Exhibit B
Tvpe 1. Consecutive Dav (Xast year's bid data)
No bids were received for Type 1 advertising. The calculation for the Examiner were made using 96-97 bid
data, and assuming the Examiner's contract is extended.
Examiner
Data
Pts.
Cost of Sample
Home Circ., SF
Price, if zero
Locally owned
Minority owned
Woman owned
None
167,200
25c
yes
no
no
15
10
2
Total
Ranking
CogLper line
FY Estimated cost
27
1
Tvpe 2. Nonconsecutive Dav (Current year's bid data)
Avail.
Points
Independent
Data
Pts.
Cost of Sample
Home Circ, SF
Price, if zero
Locally owned
Minority owned
Woman owned
15
10
5
2
2
2
$679.40
327,827
zero
yes
yes
no
15
10
5
2
2
2
Total
Ranking
Cost per line
FY Estimated cost
36
36
1
$4.30
$783,400
Notes
The bidder did not qualify for a bid preference under the MBE/WBE/LBE Ordinance.
13
Attachment 1
Page 9 or 9_
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14
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
Item 4 -File 99-1210
Department:
Item:
Description:
Purchasing Department
Resolution designating certain newspapers for the City's
outreach advertising, including the Bav View Inc.. the
Sun Reporter and the Small Business Exchange to be the
outreach newspapers of the City for the African-American
community; designating the China Press, the Sing-Tao
Daily News and The World Journal to be the outreach
newspapers of the City for the Chinese community;
designating the El Latino and the EI Reporter to be the
outreach newspapers of the City for the Hispanic
community; designating the Philippine Guardian as the
outreach newspaper of the City for the Philippine
Community; designating the Korean Times as the
outreach newspaper of the City for the Korean
community; designating the Hokubei Mainuchi as the
outreach newspaper of the City for the Japanese
Community; and designating the San Francisco Bav
Times and the Bav Area Reporter as the outreach
newspapers for the Lesbian/Gay/Bisexual Community.
Proposition J, which was approved by the San Francisco
electorate in November of 1994, provided, in part, for an
Outreach Advertising Fund to be established for the
purpose of the City placing "outreach advertising" or
weekly notices of items pertaining to governmental
operations in periodicals selected to reflect the diversity in
race and sexual orientation of the population of the City.
Outreach advertisements include, but are not limited to,
information about issues that are being reviewed by the
Board of Supervisors and directly affecting the public.
Proposition J requires the City to withhold 10 percent of
the amounts paid for official advertising and deposit the
monies in the Outreach Advertising Revenue Fund.
The Purchasing Department advises that pursuant to
Proposition J, on July 29, 1998 (File 98-1067), subsequent
to a competitive bid process, the Board of Supervisors
designated the Bav View Inc. to be the outreach
newspaper of the City for the African American
community, the China Press to be the outreach
newspaper of the City for the Chinese community, and the
El Latino to be the outreach newspaper of the City for the
BOARD OF SUPERVISORS
BUDGET ANALYST
15
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
Hispanic community. On July 29, 1998 (File 98-1068),
subsequent to a competitive bid process, the Board of
Supervisors designated that the San Francisco Bav Times
continue to be the outreach newspaper for the
Lesbian/Gay/Bisexual community under an existing
contract, after no bids were received to provide outreach
advertising to the Lesbian/Gay/Bisexual community.
Subsequently, the Board of Supervisors also designated,
without a competitive bidding process, the Sun Reporter
and the Small Business Exchange to be outreach
newspapers of the City for the African-American
community; the Sing-Tao Daily News and The World
Journal to be outreach newspapers of the City to the
Chinese community; the El Reporter to be an outreach
newspaper of the City to the Hispanic community; the
Philippine Guardian to be the outreach newspaper of the
City to the Philippine community; the Korean Times to be
the outreach newspaper of the City to the Korean
community: the Hokubei Mainuchi to be the outreach
newspaper of the City to the Japanese community: and,
the Bav Area Reporter to be an outreach newspaper of the
City to the Lesbian/Gay/Bisexual community
Mr. Rick Kimball of the Purchasing Department reports
that several outreach newspapers, including the Sing Tao
Dailv News , the Philippine Guardian, the Bav Area
Reporter and the Hokubei Mainuchi . have had difficulty
complying with the City's contracting requirements,
especially the equal benefits requirements. Consequently,
the Purchasing Department recommends that the
newspapers previously designated in July of 1998 for the
City's outreach advertising, namely the Bav View Inc., the
Sun Reporter , the Small Business Exchange , the China
Press , the Sing-Tao Dailv News . The World Journal, the
El Latino , the El Reporter , the Philippine Guardian, the
Korean Times , the Hokubei Mainuchi . the San Francisco
Bav Times and the Bav Area Reporter , continue to be
designated as the newspapers for the City's outreach
diversity program without a new competitive bid process,
for the 12-month period from July 1. 1999 to June 30,
2000. to allow these newspapers additional time to comply
with the City's contracting requirements.
BOARD OF SUPERVISORS
BUDGET ANALYST
16
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
Comments: 1. Pursuant to Proposition J and in accordance with
Section 2.81-2(a) of the Administrative Code, the City is
required to withhold 10 percent of the annual amounts
paid for the City's Type 1 and Type 2 official advertising
and to deposit these monies into the Outreach Advertising
Fund.
The City's official advertising is divided into two
categories:
Tvpe 1 - Advertisements for Two of More Consecutive
Davs
Official advertising which must be published on two or
more consecutive days, and all official advertising which
is required to be pubhshed in accordance with Section
2.103 of the Charter for special meetings of the Board of
Supervisors and its standing or special committees. The
Official Newspaper must publish at least 5 days a week
for Type 1 Advertising.
Tvpe 2 - Advertisements for Single or Non-consecutive
Davs
Official advertising, which must be pubhshed one time,
other than one-time advertising related to special
meetings for the Board of Supervisors and its standing
and/or special committees, or more than one time but not
more than three times per week for a specified number of
weeks. The Official Newspaper must publish at least 3
days a week for Type 2 Advertising.
The Purchasing Department estimates that the FY 1999-
2000 cost for the City's Type 1 and Type 2 official
advertising will be $805,180. Therefore, the estimated
amount available for outreach advertising is $80,518, or
10 percent of the $805,180.
2. The Purchasing Department states that the City
Attorney has advised that the Board of Supervisors need
not accept the Purchasing Department's
recommendations to award contracts to the above-noted
periodicals and may designate any periodical which is
qualified under the Administrative Code. Additionally,
pursuant to Sections 2.80-1 (b) and 2.81-4 of the
Administrative Code, the Board of Supervisors may
BOARD OF SUPERVISORS
BUDGET ANALYST
17
Memo to Finance and Labor Committee
June 24, 1999 Finance and Labor Committee Meeting
Recommendation:
specify additional outreach communities, and may
authorize additional advertising for communities not
adequately served by the City's official advertising and
outreach periodicals.
3. According to Mr. Kimball, there is a balance of
approximately $112,000 in the Outreach Advertising
Fund as of June 21, 1999.
Approval of the proposed resolution is a policy matter for
the Board of Supervisors.
fa 7 .
ffarvey M. Ro
XT
cc: Supervisor Yee
Supervisor Bierman
President Ammiano
Supervisor Becerril
Supervisor Brown
Supervisor Katz
Supervisor Kaufman
Supervisor Leno
Supervisor Newsom
Supervisor Teng
Supervisor Yaki
Clerk of the Board
Controller
Legislative Analyst
Matthew Hymel
Stephen Kawa
Ted Lakey
BOARD OF SUPERVISORS
BUDGET ANALYST
18
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